Academic Proposes Strengthening Three Economic Levers for Bali

Denpasar, Bali (ANTARA) - Udayana University academic Prof Dr Ni Putu Wiwin Setyari has proposed strengthening three economic levers for Bali, citing their strong upstream and downstream linkages. “The main priority is strengthening the foundational economic sectors,” Wiwin said in Denpasar on Wednesday. She identified these sectors as electricity and gas supply, information and communication, and transportation and warehousing. She assessed that besides their upstream and downstream connections, these sectors also have the highest multiplier effect, thus driving broad economic activity and creating a strong foundation for economic transformation. The second priority is strengthening labour-intensive sectors through the provision of accommodation, food and beverage services, and wholesale and retail trade. “These sectors have a high capacity to create jobs, sustain local economic activity and support the leading tourism sector,” she added. However, the accommodation and food and beverage sector, which is the largest contributor to Bali’s gross regional domestic product, is not classified as a key sector because its upstream-downstream linkages are relatively weak, indicating ongoing economic leakage in the tourism supply chain. The third lever is the downstream processing of primary and industrial sectors, namely agriculture, forestry, fisheries and manufacturing. This downstream processing can increase local added value, strengthen domestic supply chains and reduce dependence on raw material sales. According to data from Statistics Indonesia, Bali’s economic growth in the first quarter of 2026 was recorded at 5.58 percent, slightly lower than the 5.59 percent achieved in the same period of 2025. Three business fields recorded impressive growth during the first quarter of 2026: government administration at 16.67 percent, manufacturing at 8.93 percent and education services at 7.70 percent. Government spending also played a significant role, with growth of 20.28 percent, alongside imports which grew 15.14 percent, helping to sustain economic growth.