PT BIBU Gets IDR 50 Trillion Investment To Complete North Bali Airport

JAKARTA - The initiator of North Bali Airport, PT BIBU Panji Sakti, received investment funds of US$3 billion or equivalent to Rp50 trillion from the Chinese company ChangYe Construction Group to accelerate the development target of North Bali International Airport.

PTBIBU President Director Panji Sakti Erwanto Sad Adiatmoko Hariwibowo said his party had signed a Memorandum of Understanding (MoU) with the construction company from China at the Embassy of the Republic of Indonesia (KBRI) in Beijing on November 8, 2024.

He explained that in the MoU, it was agreed that the pattern of airport development investment financing would use the turnkey method, namely payment methods that were carried out after the project was completed. In this method, the contractor will complete the project first before getting the full payment from the owner or developer.

"It is extraordinary that the Chinese side agreed with us in the MoU at the Indonesian Embassy in Beijing, they are interested in becoming the main financing, the pattern is turnkey. This is a turnkey loan pattern worth US$3 billion, approximately Rp. 50 trillion," said Erwanto.

The target for the construction of North Bali International Airport is completed by the end of 2027, covering three main areas, namely airport, Aero City, and Aerotropolis, a new city to support the airport area.

According to him, the construction of the airport on the beach will not sacrifice productive land, does not take land for community settlements, does not displace places of worship, and also does not sacrifice historical sites in Buleleng Regency using the method of restoring abrasion or mining lost land. Community land will be leased without changing land ownership rights.

He said the issuance of the construction of North Bali International Airport from the National Strategic Program at a time when President Joko Widodo's administration was only a matter of too tight deadlines, before Jokowi ended his term of office.

"At that time we left PSN solely because of the deadline that had to be completed in 2024 before President Jokowi stepped down. Therefore, there were 8 who were expelled from PSN. However, the phase continued, we continued," he said.

Erwanto said that apart from China, several countries in the Middle East and India are still exploring with PTBIBU Panji Sakti to invest.

He explained the reasons for investors to join forces to build North Bali International Airport, because they are interested in the concept of airport construction based on the philosophy of life of the Balinese, Tri Hita Karana, natural harmony, human and Creator.

"There are things that they think are unique. Why is this airport thinking about culture, God. I explained the concept of Tri Hita Karana to them so that they joined," he said.

In addition to the private sector, PTBIBU has collaborated with Indonesian state-owned construction companies, such as PTwaskita Karya, PT Wijaya Karya, and PT Pembangunan Perumahan (PP).

Erwanto said the construction of North Bali International Airport received full support from the President of the Republic of Indonesia Prabowo Subianto. Therefore, he expressed his gratitude to President Prabowo Subianto.

In fact, PTBIBU President Director Panji Sakti Erwanto stated that President Prabowo Subianto would conduct a ground-breaking for the construction of North Bali International Airport before the end of 2024, waiting for the completion of the President's visit abroad and the schedule from the palace.

The plan to build North Bali International Airport is supported by several Puri figures, such as the King of Puri Agung Klungkung who is also the Chairman of the Bali Royal Association, Ida Dalem Semara Putra, Penglingsir Puri Agung Blabatuh Anak Agung Ngurah Alit Kakarsana, Penglingsir Puri Buleleng Anak Agung Ngurah Ugrasena and several other Puri figures.

Former Bali Governor Mangku Pastika also expressed support for the construction of North Bali International Airport.

"Bali is a small island, so there must be an equalizer, namely in the form of infrastructure, one of which is North Bali Airport. When I was governor, in the 2009 RPJMD, I had listed it regarding North Bali Airport," he said.