Investing in a growing country offers significant potential, largely driven by infrastructure development. This is especially true in Bali, where breathtaking natural landscapes remain untapped due to limited connectivity. We’ve seen this transformation unfold—from Kuta to Canggu, and now investment extending toward Tabanan. The Gilimanuk-Mengwi toll road was expected to accelerate development and unlock new investment opportunities. However, with its recent removal from the National Strategic Plan, investors may need to wait longer for this project to materialize—despite its frequent use as a talking point during election seasons.
Background on the Gilimanuk-Mengwi Toll Road
The Gilimanuk-Mengwi Toll Road is a significant infrastructure project aimed at connecting the western port of Gilimanuk with the central region of Mengwi, spanning 96.84 kilometers across three regencies: Jembrana, Tabanan, and Badung. Initially, the project was included in the PSN to expedite its development through regulatory facilitation and investment incentives. However, its exclusion from the PSN necessitates adjustments in funding strategies.
If completed, the toll road would enhance connectivity between major tourist areas, making access faster and more convenient for both domestic and international travelers. Key destinations along the route include:
- Pemuteran & Menjangan Island (Buleleng Regency) – Known for world-class diving, snorkeling, and the West Bali National Park, this area is popular among eco-tourists and luxury travelers seeking tranquility away from Bali’s busier south.
- Medewi (Jembrana Regency) – A rising hotspot for surfing and coastal retreats, attracting both surfers and investors looking for beachfront development opportunities.
- Balian Beach & Soka Beach (Tabanan Regency) – Emerging as an alternative surf and wellness destination, these areas are seeing an increase in boutique resorts, wellness retreats, and eco-friendly villa investments.
- Tanah Lot (Tabanan Regency) – One of Bali’s most famous cultural landmarks, this iconic temple draws millions of visitors annually and is a prime area for luxury villa developments and tourism-related businesses.
- Canggu & Pererenan (Badung Regency) – Already booming, these areas would benefit from improved access, further boosting property demand and commercial expansion.
Challenges Ahead
Although the Gilimanuk-Mengwi Toll Road is no longer part of Indonesia’s 77 National Strategic Projects (PSN) for 2025—where only three toll roads were included nationwide—Governor Wayan Koster has reassured that the project will still move forward as planned.
Koster clarified that the toll road remains a programmed development, but adjustments are being made to evaluate the planned route (trase) before proceeding further.
“The Gilimanuk-Mengwi toll road is still running, even though it is no longer a PSN. There is only a route evaluation, but the project is still programmed,” — Wayan Koster, governor of Bali (Denpasar, March 7, 2025)
This means that while progress may be slower due to the lack of national prioritization, the project is still on track and will likely rely on regional planning and private sector involvement to move forward.
- Funding and Investment: The exclusion from the PSN means that the project must rely on alternative funding strategies. The Ministry of Public Works aims for 100% private funding, which could introduce new challenges in securing investors.
- Delays and Re-auctions: Previous delays and the need for re-auctions have slowed the project’s progress. However, the government remains optimistic about completing the project, with ongoing efforts to finalize the tender process.
Bottom-line
While the exclusion of the Gilimanuk-Mengwi Toll Road from the National Strategic Projects may pose challenges, it does not halt the project’s progress. As construction continues, Bali’s real estate market is poised for significant growth, particularly in areas along the toll road. Investors and developers should remain vigilant about opportunities emerging from this infrastructure development, as it promises to transform Bali’s economic and tourism landscape.
