Major Infrastructure Upgrades Planned In Bali’s Top Tourism Destinations 

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We’re only a few days in, but 2026 could be the year that all of Bali’s infrastructural issues are resolved…maybe.

Here at The Bali Sun, we know all too intimately how Bali’s issues with traffic congestion and waste management, to name but a few, impact the lives of local residents and the experience of tourists. Bali’s Governor Wayan Koster is hopeful that this is the year that vast improvements can be made. 

Bali Governor Wayan Koster is now in his second term in office, and he is speaking increasingly openly about his concerns that the island’s infrastructural issues could result in a decline in the number of tourists visiting the province. In 2025, Bali welcomed 7.05 million international tourists, and while no targets have been announced for 2026, it is safe to say that leaders want to increase this figure once again. 

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However, as rapid tourism development has led to the conversion of agricultural land into commercial and residential properties, especially in the central south, the necessary infrastructural upgrades to essential systems and services have not been implemented. 

Governor Koster told the media this week, “If this traffic jam problem is left unchecked, tourism in Bali could decline. Therefore, I will prioritize infrastructure development to ensure its completion in my second term.”

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He added, “Bali tourism contributes 66% to the Balinese economy. So, much of Bali’s economic progress and well-being is supported by tourism.” Governor Koster noted that the island has finally recovered, statistically speaking, from the impacts of the pandemic.

He suggested that this year is the tipping point for Bali’s future in terms of tourism and infrastructure development. 

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Governor Koster discusses tourism figures and changing travel trends, sharing, “Before COVID-19, it was 6.2 million. By 2025, it will be 7,050,000. So, if anyone says Bali is quiet, they’re lying low now. In fact, the surge is extraordinary.”

He was clear that there are two top priority issues that need to be addressed in the province: “The first negative impact is traffic jams, and the second is waste. This must be resolved. This congestion cannot be resolved hastily because it is related to road infrastructure and transportation modes.” 

Governor Koster confirmed that the Bali Provincial Government has created a Priority Infrastructure Development Plan that focuses on the next five years. The infrastructure developments include road network upgrades and transportation projects that will connect north, south, east, and west Bali, via central Bali, to help reduce congestion at every problem point.

The Governor noted, however, that the biggest issue in bringing these projects to life is funding, citing that the provincial budget is insufficient to cover the costs of these mega-developments. Governor Koster confirmed that this has been conveyed to the Minister of Public Works within the central government. 

He concluded, “This traffic jam problem must be resolved. The region can’t afford it because it doesn’t have enough budget. That’s why I complained to the Minister of Public Works. Thankfully, he understands and fully supports infrastructure development to address traffic congestion in Bali.”

For tourists, this may feel all very abstract. Yet the impacts will be very tangible for holidaymakers, tourists, digital nomads, and expats. It is already evident that Governor Koster will be targeting tourism businesses that are not paying their taxes in order to boost provincial income to its targeted amount. 

In 2026, there will also be more of a focus on getting tourists to pay their Bali Tourism Tax Levy fee. This is a mandatory IDR 150,000 contribution that has been in effect since February 2024; however, data shows that as little as 35% of tourists have actually been making the payment.

The Bali Tourism Tax was introduced to help generate more funds to help ‘conserve culture, nurture nature, and improve infrastructure’. Tourists can make their Bali Tourism Tax Levy payment via the LoveBali website or app.