Bali’s Economy Grows Only 0.07 Percent, Tourism Sector Needs More Attention

Sanur Beach, Bali
Sanur Beach, Bali

National economic growth recorded an increase. Based on records, the Indonesian economy recorded a positive growth of 3.69 percent year on year and 5.02 percent in the fourth quarter of 202. However, there are two regions with the lowest economic growth rates, one of them is Bali.

The Coordinating Minister for the Economy, Airlangga Hartarto, said that the tourism sector needs to get more attention during this period of economic recovery. This is because the tourism sector is the sector most affected by the Covid-19 pandemic.

One example of a region that relies the most on its tourism sector in Bali. During the pandemic, Bali’s economy recorded the least growth of other regions because the most dominant economy in Bali came from the tourism sector, whereas usually, Bali’s economic growth can exceed national economic growth.

“Those based on tourism such as Bali, the growth is still very small, it’s amount 0.07 percent. This proves that the tourism sector needs more attention,” said Airlangga at the National Seminar, Tuesday (8/2/2022).

He said that the tourism sector was closely dependent on the process of handling the pandemic. Now the government has raised the PPKM level in Bali to level III.

However, foreign tourist visits to Bali are still allowed with some strict terms and conditions that need to be met for these foreign tourists. The permitting of tourists to vacation in Bali is also a step by the government so that the economy in Bali can run again.

Airlangga said, “Our economy grew at 5.02 percent (in the fourth quarter of 2021), so that in 2021 on an annual basis it was 3.69 percent, this is in line with the forecast at 3.7 percent.”

He added that the economic acceleration was supported by the processing industry which grew 4.92 percent (YoY) in the fourth quarter of 2021. The driving force for the growth of the processing industry was the transportation industry which grew 22.61 percent (YoY).

In addition to PPnBM incentives, the growth of the manufacturing industry in the fourth quarter of 2021 is also supported by the base metal industry. This sector grew 11.31 percent due to an increase in the tin to bauxite production.

“The processing industry contributed 18.8 percent and in the fourth quarter, its contribution was 1 percent. Then the trade sector also grew 5.5 percent, the industrial sector grew 4.92 percent, (as well as) the agriculture, mining, and construction sectors,” said Airlangga

The spatial structure of Indonesia’s economy in 2021 is still dominated by the province group on the island of Java, which contributes to a GDP of 57.89 percent.