Badung Regency explores second SMI loan for priority projects
The Badung Regency government in Bali is exploring a second regional loan application to PT Sarana Multi Infrastruktur (SMI) to support priority infrastructure projects targeted to commence in 2027.
“We want to ensure that strategic infrastructure development needs can be planned thoroughly, both from the technical side and the financing scheme,” said Badung Regent I Wayan Adi Arnawa in Mangupura, Badung, Bali, on Friday.
He said his administration continues to refine plans to accelerate strategic infrastructure through innovative financing schemes and is building communication and cooperation with SMI.
One of the main projects requiring the financing scheme is the continuation of the Gatot Subroto Barat road extension towards the Canggu area in Badung.
According to Regent Adi Arnawa, the route in Banjar Batu Culung, Kerobokan Kaja, which lies within the planned road extension project, is densely populated, prompting the Badung administration to study the option of building an underground road to avoid social conflict over land acquisition.
Beyond road infrastructure, the surge in tourism mobility along the Gatsu-Canggu-Munggu corridor has led the Badung administration to also prepare an electronic road pricing (ERP) option.
As a long-term measure, the Badung administration is exploring the involvement of a regional-owned enterprise (BUMD) to manage the paid express route, while existing public roads will remain free of charge.
“This option is designed to control traffic while also serving as a self-financing scheme or yield capture, where ERP levies will be reused to support infrastructure loan repayments,” he said.
SMI’s Head of Public Financing Division, Adri Asmoro, said the company is very open to discussing schemes that match Badung’s fiscal capacity, which is known to be strong amid recovering investment.
According to him, SMI sees Badung Regency as having substantial infrastructure needs in line with economic growth and tourism activity.
“We are open to discussing financing schemes that suit the project’s characteristics, the region’s fiscal capacity, and prudential principles in public financing,” he said.