EYEWITNESS NEWS – DENPASAR
Bali Governor Wayan Koster emphasized that the tourism sector remains the primary backbone of Bali’s economy. Consequently, tourist arrival trends—encompassing both international and domestic visitors—serve as one of the most critical indicators for assessing the island’s economic health and growth.
Governor Koster made these remarks while attending the 2026 Stakeholders’ Temu Wirasa (Dialogue Forum), hosted by the Bank Indonesia Representative Office for Bali Province at the Dharma Negara Alaya Building in Denpasar on Friday (Oct. 23, 2026).
“Generally speaking, determining whether Bali’s economy is performing well is quite simple: you look at the number of visitors coming to Bali, both foreign and domestic, and whether those figures are rising or falling,” Governor Koster stated.
According to Koster, tourism is deeply intertwined with various community economic sectors—ranging from hotels, villas, and restaurants to micro, small, and medium enterprises (MSMEs), transportation, agriculture, and food supply. Given these characteristics, an increase in tourist arrivals not only benefits tourism industry players but also stimulates broader grassroots economic activity.
Governor Koster revealed that the tourism sector contributed approximately 66 percent to Bali’s economy in 2025. This massive contribution demonstrates that tourism dynamics have a profound impact on regional economic performance. Therefore, sustaining the tourism sector is essential for maintaining Bali’s economic stability and growth.
Regarding arrival trends, Koster noted that international tourist visits through the end of September 2026 showed a positive trajectory compared to the same period in the previous year. Despite a temporary dip between February and April 2026 driven by global geopolitical shifts, international arrivals have since rebounded and are on the rise.
The Governor also highlighted that international tourist visits in 2025 reached approximately 7.05 million. He noted that this milestone marks the highest figure in the history of Bali’s tourism, even surpassing pre-pandemic arrival numbers recorded in 2019.
In tandem with tourism recovery, Bali’s economy grew by 5.82 percent in 2025. Koster emphasized that this achievement is particularly significant because Bali’s economic structure relies primarily on tourism and community economic activity, rather than natural resource exploitation such as oil and gas mining.
“There is a vast difference between a resource-based economy and a tourism-based economy. Resource-based economies—such as mining, oil, gas, and gold—tend to be concentrated in a single location. In contrast, a tourism-based economy distributes its impact across all regencies and cities throughout Bali,” he explained.
While tourism activities are predominantly concentrated in Denpasar, Badung, and Gianyar, Governor Koster explained that the economic benefits are felt by communities in other regencies and cities as well. The tourism sector’s demand for agricultural produce, food supplies, local crafts, transportation, and various supporting services fosters inter-regional economic connectivity across Bali.
Bali’s robust economic performance is further reflected in several positive social indicators. The province’s poverty rate stood at 3.42 percent, the open unemployment rate at 1.45 percent, and the Gini ratio at 0.333. These figures indicate that Bali’s economic growth is accompanied by a relatively sound socio-economic standard for the public.
Taking into account current tourist arrival trends and grassroots economic activity, Governor Koster expressed optimism that Bali’s economic growth in 2026 will outperform the previous year.
“Therefore, when comparing Bali’s economic growth in 2026 to 2025, it will undoubtedly be much better,” Koster asserted.
Nevertheless, the Governor cautioned about challenges that warrant attention, specifically the decline in domestic tourist arrivals, which has been partly influenced by rising domestic airfares. He stressed that domestic tourists play a crucial role in sustaining the momentum of Bali’s tourism sector and overall economic activity.
Koster underscored the importance of maintaining the sustainability and resilience of the tourism sector, noting that its impact extends beyond mere economic growth to encompass the social well-being of Bali’s society.
“Today, tourism serves as Bali’s economic anchor. This means our livelihoods in Bali depend on tourism. If this sector is disrupted, the fallout affects not only the economy but also the social fabric and other areas of life,” he remarked.
Meanwhile, the Head of the Bank Indonesia Representative Office for Bali Province, Achris Sarwani, stated that the availability of accurate data and insights from stakeholders plays a strategic role in understanding regional economic trends and formulating sound economic policies.
Achris explained that information gathered from Bank Indonesia survey respondents serves as an early indicator to identify business developments, consumer behavior, and price movements within the community before official macroeconomic data is released. This information contributes directly to the formulation of growth projections, inflation rates, and policy recommendations.
During the event, the Bank Indonesia Representative Office for Bali Province projected that Bali’s economy will continue to grow positively in 2026 within the range of 5.4 to 5.9 percent. Meanwhile, inflation is expected to remain controlled within the target corridor of 2.5 percent plus-minus 1 percent.
The 2026 Stakeholders’ Temu Wirasa carried the theme, “Data Pramana, Bali Rahayu: Synergizing to Promote Higher and More Resilient Bali Growth.” The event served as a platform to strengthen synergy among Bank Indonesia, survey respondents, and key stakeholders in enhancing the quality and availability of regional economic data.
Through the event, Bank Indonesia also reaffirmed the importance of ongoing collaboration and information exchange to support data-driven policy-making. This synergy is expected to bolster Bali’s economic resilience amid global economic dynamics while propelling higher, more inclusive, and sustainable regional economic growth.
Reporter : Daniel Herry
