The Badung Regency Government is weighing a significant loan of up to Rp 3 trillion to accelerate infrastructure development, particularly to address chronic traffic congestion in the region.
Badung Regent I Wayan Adi Arnawa confirmed the proposed borrowing plan, acknowledging that the total infrastructure needs in the regency could approach Rp 10 trillion. However, he emphasized that the administration is targeting a more modest loan amount of around Rp 2,8 trillion to Rp 3 trillion.
“If we’re being honest, we’re looking at close to Rp 10 trillion for infrastructure development. But that’s not realistic for us to pursue in full, so we must act quickly to get started—especially before land prices rise further,” Adi Arnawa said.
Multiple Loan Channels Under Consideration
The regent said several loan schemes are being evaluated, including options through BPD Bali, PT Sarana Multi Infrastruktur (PT SMI), or other financial institutions. However, BPD Bali is currently the most likely candidate.
“This is one of the alternatives. For now, BPD Bali is the more likely option, though we’re not ruling out PT SMI or other parties,” he said.
He added that the Ministry of Home Affairs has been consulted and found no objection to the proposed loan, with further internal discussions now underway.
Debt Repayment Tied to Regional Revenue and Dividends
To service the debt, the Badung administration plans to rely primarily on locally generated revenue (PAD), as well as future dividends from its capital injections into BPD Bali.
“Our plan is to increase capital participation in BPD Bali each year to reach Rp 1,8 trillion. As we boost our equity, the dividends will rise too, and that can be directed toward repaying the loan,” Adi Arnawa explained.
He stressed that infrastructure development remains a top priority during his leadership alongside Deputy Regent Bagus Alit Sucipta. The goal, he said, is to provide long-term solutions to Badung’s infrastructure gaps, especially worsening traffic congestion across the regency.
