Badung Explores Borrowing for a Road Corridor Linking Canggu and Mengwi

In brief: Badung Regency is discussing another infrastructure loan for a road corridor running from western Gatot Subroto through Canggu toward Mengwi and Werdi Bhuana. Financing arrangements are still being assessed, so the proposal offers no immediate change for commuters.

The latest financing discussions were outlined after a 21 September 2026 meeting involving Badung officials and representatives of Indonesia's Home Affairs, Finance and National Development Planning ministries. ANTARA reported the proposal on 22 September. It concerns a wider transport connection intended to tackle congestion across central Badung, not a road that has already been delivered.

September plan set out an eight-year financing framework

The regency proposed working with state infrastructure financier PT Sarana Multi Infrastruktur (PT SMI) and regional lender Bank BPD Bali. Regent I Wayan Adi Arnawa described an eight-year borrowing arrangement covering 2027–2035. The terms under discussion included a 12-month grace period on interest and a deferral of principal repayments until the third year.

Badung officials cited a debt-service coverage ratio of 20.86 against a stated minimum of 2.50. That figure reflects the administration's assessment of borrowing capacity; it does not establish that lenders have committed funds. In its 23 September announcement, the regency government said the plan would proceed to formal consideration, with technical, institutional, economic, legal and social risks among the matters requiring scrutiny.

October reporting distinguished the tunnel from the wider route

The September proposal named the Gatot Subroto Barat–Canggu–Mengwi Terminal–Werdi Bhuana corridor. A report published by Warta Bali on 4 October described a more specific division of potential funding. According to that account, the proposed second loan would principally support the tunnel component between Gatot Subroto Barat and Canggu, while the onward connection through Mengwitani to Werdi Bhuana would be developed in stages using the regency's own revenue.

The same report, citing Badung's regional secretary, said the borrowing proposal was still being discussed and required further approvals at regional and central government level. These later details refine the financing discussion; they are not evidence of a signed loan agreement or an authorised construction start.

Road access remains unchanged for residents and renters

Better links between Canggu and inland Badung could eventually make some journeys easier. Much depends on the final alignment, junction design and whether individual sections are funded and built. The proposed loan term ending in 2035 is a repayment horizon, not a completion timetable for the road.

For households comparing places to live, the relevant travel times are still those on today's roads. A prospective transport connection may deserve attention when judging an area over the longer term, but it cannot yet be counted as a functioning alternative to current routes. Nor does the borrowing discussion provide evidence that nearby property prices will rise.

• ANTARA News Bali, “Badung matangkan rencana lakukan pinjaman daerah untuk pembangunan infrastruktur” — 22 September 2026.
• Warta Bali Online, “Badung Ajukan Pinjaman Daerah II Rp6 Triliun” — 4 October 2026.