Infrastructure · Canggu

KAI to study a rail link between Canggu and Bali airport

State railway company KAI has signed a five-year memorandum to prepare a rail line between Canggu and Ngurah Rai airport. LRT (light rail) and an electric tram are both on the table, while the island's subway project remains stalled.

News of Published in DOMA News: 2 min read

Key points

  • The memorandum was signed on 1 September 2026 for five years.
  • KAI is comparing LRT and electric tram options for the Canggu-airport route.
  • Earlier, the governor said a Kuta-Canggu tram could start construction in 2027.

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.

What it means for investors

A rail line could change access to Canggu, but years will pass before there is a final design and construction. The practical risk is closer. If a tram route comes with roads widened to 24 metres, plots along it may face acquisition and new setback rules. Before buying in Canggu, we would check whether a property sits on the planned corridor.

Open the Bali map

Q&A

Will Bali get a subway or a tram?

The subway is stalled for lack of investors. Officials and KAI are studying a tram or LRT between Canggu and the airport, and the governor has named 2027 as a possible tram construction start.

Source
Investortrust, published September 4, 2026, language: Indonesian
Also checked: detikBali, Katadata

Prepared by the DOMA editorial team from public reports, with the original source linked above. This is a news review, not legal or tax advice. Not a public offer.

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