The signing ceremony in Investment Coordinating Board Office in Jakarta on Tuesday (01/21) - Photo by BKPM.

JAKARTA (TheInsiderStories) – Indonesian state-owned construction firm PT Nindya Karya and the Korea Overseas Infrastructure & Urban Development Corporation (KIND) and Korea Rail Network Authority (KRNA) have signed a US$20 million contract to build Light Rail Transit (LRT) in Bali’s Ngurah Rai International Airport on Tuesday (01/21). The 4.78 kilometers projects are expected to finish in two years and it will have four stations between the Jineng satellite terminal and Ngurah Rai airport.

The LRT aims to facilitate users and is expected to improve connectivity between the Jineng satellite terminal in Kuta and Ngurah Rai airport. In addition, LRT can be an alternative mode of transportation to the airport that reduces traffic congestion.

The signing was carried out by Nindya Karya’s acting director Haedar A. Karim, KIND’s executive director Lim Han Gyu and KRNA’s executive director Son Byeong Doo and witnessed by deputy investment planning officer investment at Investment Coordinating Board Ikmal Lukman and Attache Representative Korean Embassy Jakarta Kim Dong-Jin.

“The current project is the first step that will continue in the development of the green city and TOD in Seminyak and Kuta,” Karim said, adding the next process is the signing of a memorandum of understanding (MoU) with PT Angkasa Pura I.

“At the latest three months after the MoU with Angkasa Pura, we will make the feasibility study. We are trying to start construction this year,” he said, stressing the project uses business to business scheme and does not use loan funds.

The LRT aims to facilitate users and is expected to improve connectivity between the Jineng satellite terminal in Kuta and Ngurah Rai airport. In addition, LRT can be an alternative mode of transportation to the airport that reduces traffic congestion.

LRT procurement in Ngurah Rai is expected to increase the number of passengers at the international airport. In 2019, the passengers crossing the airport only increased by 2 percent compared to the previous year. This figure is much lower than the rate of increase in 2018.

Based on airport management data, during January-December 2019, the airport was passed by 24.2 million passengers. There was a growth of 390,383 passengers or an increase of 2 percent compared to the record in the previous year. In 2018 the passengers through the airport reached 23.77 million. The growth rate in the past two years touched 13 percent compared to 2017.

Of the total 24.2 million passengers, international routes have again outperformed domestic routes. With a ratio of 13.89 million passengers on international routes and 10.28 million passengers on domestic routes, the proportion of passengers in 2019 was 57 percent compared to 43 percent.

The record number of passengers during 2019 confirms the growth rate of passengers over the past five years. The highest growth rate experienced in 2016, there was a growth of 2.87 million passengers or 16.8 percent compared to 2015. The average annual growth rate for the last five years reached 9 percent.

For aircraft movement figures, 155,334 movements were recorded in 2019, down 4 percent from 162,623 movements records in 2018. The decline is due to a number of airlines changing the small type aircraft to large type with more passenger capacity.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com