Bali pivots from MRT to Rp2.2 trillion airport–Canggu electric tram

Denpasar — Bali’s provincial government has shifted its planned mass transit link between I Gusti Ngurah Rai International Airport and Canggu from an underground MRT concept to a battery-powered electric tram, backed by an estimated investment of around Rp2.2 trillion, according to multiple reports in August and September 2026.

Local transport authorities and media have stated that the MRT proposal, which had been discussed for several years, will not proceed and that planning has instead focused on an autonomous rail rapid transit (ART)–style electric tram system running largely at street level along the busy tourism corridor between the airport and Canggu.

Officials from the provincial Transportation Agency have described the move to an ART-based tram as a way to secure a lower investment and operating cost compared with an underground metro, while still providing a higher-capacity public transport option for southern Bali.

Project concept and partners

Reports from Indonesian and regional outlets state that the initial corridor is intended to connect the airport with Canggu, a coastal area in Badung regency that has seen rapid tourism and residential growth.

Coverage citing provincial officials notes that the system is planned as a battery-powered electric tram. The design aims to avoid overhead power lines by placing batteries on the vehicles, with an elevated section in the airport area and predominantly street-level running through Kuta, Legian, Seminyak and into Canggu.

The provincial government and Badung regency have signed a cooperation arrangement with state railway operator PT Kereta Api Indonesia (PT KAI) to study and develop the tram concept, including feasibility studies, detailed engineering design and integration with other transport modes.

Planned scale, capacity and phasing

Several reports describe a planned route of approximately 12–13 kilometres from the airport to Canggu, with a design journey time of about 30 minutes between the termini.

The line is projected to carry up to 60,000 passengers per day. According to these accounts, that capacity has been framed as serving around 40 percent of mobility needs along the corridor, which is currently characterised by heavy road traffic and long travel times during peak periods.

The development is structured in phases. Preliminary outlines describe a first segment of about 6.6 kilometres from the airport to the Legian area, followed by a second section of roughly 6.5 kilometres extending through Seminyak to Canggu. Commercial operations on the initial section are targeted for 2028, with full operations to Canggu envisaged for 2029.

The overall investment has repeatedly been stated at around Rp2.2 trillion. Some reports break this down into an estimated Rp1.2 trillion for the first phase and Rp1 trillion for the second phase, with PT KAI expected to play a leading role in financing and operating the system.

From MRT to ART tram

The airport–Canggu corridor was previously associated with an underground MRT proposal. Local media and real estate commentary note that this MRT concept failed to secure investors and has now been officially dropped in favour of the tram plan.

Statements attributed to Governor Wayan Koster in these reports indicate that the ART-based tram is considered technically simpler and more cost-efficient than tunnelling for an underground metro, while still offering a significant upgrade over existing road-based transport.

The switch in concept also changes the expected funding and operating model. Earlier MRT discussions focused on private investment, whereas the tram project is now linked to PT KAI’s participation as a state-owned rail operator, potentially reducing reliance on provincial budget funding.

Regulation, timelines and uncertainties

While officials and partners have outlined target dates, the project remains in the planning and study phase. Groundbreaking for the tram is widely reported as being targeted for March 2027, with staged operations beginning in 2028 and full completion in 2029.

Multiple accounts emphasise that the financing scheme is still under discussion and that provincial regulatory instruments, including a gubernatorial regulation, are expected to be issued before construction can begin.

For businesses and property owners along the corridor, the distinction between announced timelines and secured, fully financed construction is material. The current information indicates a clearer partnership structure and phased schedule than the earlier MRT proposal, but it does not yet confirm that all approvals, land acquisition and funding agreements have been finalised.

Sources

• The Star
• Migrant Times
• Bali Discovery
• Radar Bali (Jawa Pos Group)
• Villa Bali Sale
• BriefAsia
• DOMA