In 1931 Department Voor Verkeer en Waterstaat of the Indian Dutch Government (similar to Department of Public Works) constructed an Air Strip for domestic aviation in Bali. During 1941 up to 1947 , This airport underwent a renovation work from 1941 to 1947, where its runway was upgraded and extended to the size of 1600 x 45 meters. Since it was located in the Tuban area, it was called Tuban Airport.
In 1949 an air terminal was erected for Tuban Airport along with other aviation facilities. In 1959 Tuban Airport commenced providing services to international airlines. However it was only recognized as an international airport by the International Civil Aviation Organization in 1963. From 1963 up to 1969 the Indonesian Government built an international airport terminal and extended the runway by damming up part of Bali strait so that the runway is extended to be 2700 x 45 meters.
On August 1st. 1969, President Soeharto inaugurated the new Bali international airport, and changed its name to Ngurah Rai International Airport. During 1975 through 1978 Indonesian Government constructed another new International Airport terminal. The old International Airport was converted to be a domestic terminal and the former domestic terminal was used for cargo, freight forwarding and catering.
On 1 October, 1980, the management of Ngurah Rai International Airport was reassigned from the Directorate General of Air Communication to Angkasa Pura I Public Company. On September 1st 1985, the name Pelabuhan Udara was changed to Bandara Udara. On September 7 1990 the first phase of the Airport Facilities and Aviation Safety was officially dedicated by the Minister of Communication (it was scheduled in three stages or phases).
The first stage of development encompassed the extension of the passengers terminal which was equipped with Aviongrade, parking lot for vehicles, new operational buildings furnished with airline service facilities and the extension of the runway to 3000 x 45 meters. On October 31st. 1992 the official operations of the Ngurah Rai Airport Expansion was inaugurated by President Soeharto. Angkasa Pura I Public company was converted into a public limited company or P.T. (Persero) Angkasa Pura I, coming into force on January 2 1993.