This Year, Bali’s Economy Is Believed to Revive


In the past two years, or since the Covid-19 pandemic hit Indonesia, Bali has been one of the most affected areas of its economy. This is because Bali relies on tourism as the “main move” and tourists’ visits have decreased dramatically.

However, in line with the implementation of the booster vaccine and the reopening of jobs, the Balinese economy is projected to strengthen in 2022.

The Head of Representative (KPw) of the Bali Province Office of Bank Indonesia Trisno Nugroho explained that in January 2022 the Bali Economic Condition Index (IKE) increased to 89 points compared to the IKE in December 2021 with an index of 84 points (mtm).

Trisno, quoted from his official release, Tuesday (15/2/2022), explained, “The increase in public or consumer optimism about economic conditions is driven by people’s perceptions of improving incomes in line with the reopening of jobs in 2022,”

The Consumer Expectation Index (IEK) of the Balinese people on economic conditions in the region also increased to a level of 122.8 in January, compared to December 2021 (mtm), people’s expectations of the Balinese economy were still at the level of 113.3.

Furthermore, the increase in the expectation index illustrates the public’s optimism towards increased income, job creation, and business fields which are projected to be better than 2021.

Trisno also explained that in general the Bali Consumer Confidence Index (IKK) was at an optimistic level in January 2022. Bali’s IKK was at the level of 105.9 or an increase compared to December 2021 with an index of 98.8.

“The increase in consumer confidence is in line with the government’s policy regarding booster vaccines which are considered the right step in dealing with the Covid-19 pandemic. In addition, the high tourism activity after the Christmas and New Year (Nataru) holidays has also boosted consumer optimism in early 2022,” said Trisno.

However, Bank Indonesia continues to provide notes amid public optimism. According to them, the Bali Provincial Government needs to be aware of the impact of the increasing Covid-19 cases that took place during February.

The right handling strategy is considered to minimize the impact of the increase in Covid-19 cases which will directly affect the Balinese economy.