What was signed
KAI vice president of corporate communication Anne Purba said the Bali memorandum covers preparing a line from Canggu to the airport. She said congestion on that route stretches for almost 15 kilometres.
The agreement runs for five years. It covers data collection, a feasibility study, detailed engineering design, integration with other transport modes and land acquisition coordination with local governments.
The options
KAI is studying LRT and an electric tram. It is also looking at construction methods that respect temples and avoid elevated structures where they would be a problem.
In August 2026 Governor Wayan Koster said an ART (autonomous rail transit) tram between Kuta and Canggu could start construction in 2027. That depends on a governor's regulation still being drafted. Roads on the route are planned to be widened to 24 metres with a dedicated lane.
What happened to the subway
The Bali Urban Subway project is stalled. A groundbreaking ceremony was held in September 2024, but by August 2026 construction had not started and no private investors had been found.
The tram is estimated at Rp 2.2 trillion to build plus about Rp 1 trillion for track preparation. All options are still being studied.
Officials' view
Badung Regent Wayan Adi Arnawa stressed that public transport without dedicated lanes will fail. KAI president director Bobby Rasyidin added that a rail project in Bali has to fit the island's character and serve local residents as well as tourists.