Adi Arnawa Explores Second Phase Loan from PT SMI for Infrastructure Development
Badung Regent I Wayan Adi Arnawa is exploring a second phase regional loan application to PT Sarana Multi Infrastruktur (PT SMI). The second phase borrowing plan is intended to support a number of priority projects.
“We want to ensure that strategic infrastructure development needs can be planned thoroughly, both from the technical side and the financing scheme,” said Adi Arnawa at his official residence, Puspem Badung, on Thursday (27/8/2026).
One of the Badung Regency Government’s main agendas is to continue the construction of a connecting road from West Gatot Subroto Street (Gatsu) to Canggu. However, construction has been hampered because the route in Banjar Batu Culung, Kerobokan Kaja Urban Village, is very densely populated. As a solution, the Badung Regency Government is studying the option of building an underground road to avoid social conflict arising from land acquisition.
“To avoid social disruption along West Gatot Subroto, where the settlements are very dense, it is possible that we will build an underground road towards Canggu and the surrounding area. In addition, the surge in tourism mobility in the Gatsu-Canggu-Munggu corridor has led us to prepare an electronic road pricing option,” said Adi Arnawa.
The implementation of electronic road pricing is designed to control traffic congestion while also serving as a self-financing scheme. Revenue from the paid system will be allocated back to support repayment of the infrastructure financing loan.
“As a long-term measure, we are also exploring the involvement of regional-owned enterprises to manage this paid express route, while existing roads will remain free for the public. Not only that, we are also designing the construction of a large-scale multipurpose international stadium through sponsorship schemes and private investment so that it does not fully burden the regional budget,” said Adi Arnawa.
The infrastructure development plan was welcomed positively by PT SMI management, which considers Badung’s needs to be very high amid economic growth. PT SMI expressed its openness to discussing financing schemes that match the region’s strong fiscal capacity.
“We see that Badung Regency has substantial infrastructure needs in line with economic growth and tourism activity. PT SMI is open to discussing financing schemes that suit the project characteristics, the region’s fiscal capacity, and the precautionary principles in public financing,” said PT SMI Head of Public Financing Division, Adri Asmoro LP.
To follow up on the loan plan, the state-owned financing company has asked the Badung Regency Government to promptly complete the administrative requirements. The Badung Regency Government has been asked to finalise technical studies, regulations, and investment feasibility before moving to the project implementation stage.