Bali’s Economy Shows Positive Growth on Second Semester

Jakarta, InfoPublik - The pinnacle of the G20 Summit becomes one of the contributors to Bali Province’s economic growth in its second semester this year. The accommodation and food and beverage sectors become the major support, followed by agriculture, construction, and trade sectors.

Statistics Indonesia (BPS) recorded that during July to September 2022, Bali’s economy grew 8.09% compared to the same period last year. This achievement is far above the national economic growth recorded at 5.72%. Since January to September, the GDP accumulatively grew 4.19% compared to last year’s growth.

‘’G20 brings contribution of around 1% to Bali’s GDB,” Head of Bank Indonesia Representative for Bali Province Trisno Nugroho said, Monday November 7, in Denpasar, Bali.

The economic growth became stronger entering the third and fourth quarter, albeit tourist visit including G20 participants has only reached one third of the normal condition before the pandemic.

After the pandemic, the economic growth across Indonesia’s regions in the third quarter of this year shows a more optimistic trend to keep increasing. It is marked by the highest economic growth in Sulawesi at 8.24%, followed by Maluku and Papua with 7.51%, and Bali and Nusa Tenggara with 6.69%.

The largest contributors to the growth by expenditure during the third quarter alone came from the export sector at 21.57%, investment at 3.01%, household consumption at 2.59%. Growth structure according to the employment field came from accommodation, food and beverage providers at 18.43%, agriculture, forestry, and fishery at 14.81%, and construction at 11.18%.

Since the first quarter of 2022, Bali’s GDP has already indicated a positive growth, recorded at 1.43% yearly and 3.05% on the second quarter. Bank Indonesia projected that during the last three months or October to December 2022, Bali will grow within the range of 5%. Therefore, in total of 2022, Bali’s economic growth will be around 3.8%--4.6%.

‘’The prediction already includes the G20 factor, which surely contributes to the rise of Bali’s economy,’’ Trisno said.

The pandemic has slowed the economy in almost all parts of the world thus impacting foreign tourist visit to Bali since 2020 until now. Bali, known for its tourism, relies heavily on foreign and domestic tourist visits to drive its economy. Tourism sector serves as the locomotive for Bali’s economic growth.

In 2020, Bali’s economy suffered a contraction of -9,31% compared to the previous year. The slowdown eased in early 2021, although it was still recorded at -2,47%. In 2022, the economic growth indicates a positive progress.

Bank Indonesia’s data shows that foreign and domestic tourist visits to Bali reaches approximately 6 million visits per year. In 2022, tourist visits has only been accounted to one third from normal. Previously, there were 38 direct flights to Bali, now there are only 27 flights. Meanwhile, the economic recovery is predicted to continue.