Bank Indonesia Urges More Equitable Investment Distribution Beyond Southern Bali
Denpasar (ANTARA) - Bank Indonesia (BI) has emphasised the importance of equitable investment distribution, particularly outside the southern Bali region, to bring about broad and inclusive prosperity.
"The potential outside Sarbagita (Denpasar, Badung, Gianyar and Tabanan) has not been optimally developed," said Bank Indonesia Deputy Governor Filianingsih Hendarta on the sidelines of the Bali Jagadhita 2025 Business and MSME Exhibition in Denpasar, Bali, on Monday.
She said that equitable investment distribution and the development of new tourism destinations are essential so that the benefits of development are more widely felt by the public. She noted that approximately 87 per cent of investment is concentrated in southern Bali, encompassing the Sarbagita area, with the dominant investment focused on the tertiary sector.
This is because 70 per cent of tourism activity in Bali is centred in Sarbagita, she continued. As a result, the concentration in southern Bali has had an impact on the quality of tourist visits, as seen in declining expectations of destination exclusivity due to visitor overcrowding.
Meanwhile, the retail sector in Bali is also heavily dependent on tourist consumers. "A Bank Indonesia study shows a very strong correlation between retail sales and tourist numbers. Access to financing for MSMEs also needs to be continuously encouraged, given the limited growth in MSME credit in the first quarter of 2025," she added.
Bali Governor Wayan Koster, speaking at the same event, revealed that his administration would undertake improvements to basic infrastructure and ensure equitable access to public services across the island.
The aim is to improve inter-regency and inter-city infrastructure access in Bali, including reducing congestion at several points in Denpasar and Badung. This would be achieved through burden-sharing, whereby 10 per cent of hotel and restaurant tax (PHR) revenue from Badung Regency, Gianyar and Denpasar would be contributed towards joint infrastructure development by the Bali Provincial Government for the regencies of Bangli, Buleleng, Jembrana, Karangasem, Klungkung and Tabanan.
The PHR contribution would use a special financial assistance (BKK) mechanism. He explained that plans include the construction of underpasses — one project each to be carried out by the Bali Provincial Government and Badung Regency, and two projects by the Denpasar City Government. Additionally, inter-regency roads would be developed jointly through shared national and regional budget allocations.
"There is no economic growth without strong infrastructure support. That is why infrastructure must be a strategic programme for regional governments," he said.
Meanwhile, the Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) recorded that investment realisation in Bali in 2024 reached Rp36.5 trillion. Nearly 50 per cent of that investment was located in Badung Regency.
"The potential outside Sarbagita (Denpasar, Badung, Gianyar and Tabanan) has not been optimally developed," said Bank Indonesia Deputy Governor Filianingsih Hendarta on the sidelines of the Bali Jagadhita 2025 Business and MSME Exhibition in Denpasar, Bali, on Monday.
She said that equitable investment distribution and the development of new tourism destinations are essential so that the benefits of development are more widely felt by the public. She noted that approximately 87 per cent of investment is concentrated in southern Bali, encompassing the Sarbagita area, with the dominant investment focused on the tertiary sector.
This is because 70 per cent of tourism activity in Bali is centred in Sarbagita, she continued. As a result, the concentration in southern Bali has had an impact on the quality of tourist visits, as seen in declining expectations of destination exclusivity due to visitor overcrowding.
Meanwhile, the retail sector in Bali is also heavily dependent on tourist consumers. "A Bank Indonesia study shows a very strong correlation between retail sales and tourist numbers. Access to financing for MSMEs also needs to be continuously encouraged, given the limited growth in MSME credit in the first quarter of 2025," she added.
Bali Governor Wayan Koster, speaking at the same event, revealed that his administration would undertake improvements to basic infrastructure and ensure equitable access to public services across the island.
The aim is to improve inter-regency and inter-city infrastructure access in Bali, including reducing congestion at several points in Denpasar and Badung. This would be achieved through burden-sharing, whereby 10 per cent of hotel and restaurant tax (PHR) revenue from Badung Regency, Gianyar and Denpasar would be contributed towards joint infrastructure development by the Bali Provincial Government for the regencies of Bangli, Buleleng, Jembrana, Karangasem, Klungkung and Tabanan.
The PHR contribution would use a special financial assistance (BKK) mechanism. He explained that plans include the construction of underpasses — one project each to be carried out by the Bali Provincial Government and Badung Regency, and two projects by the Denpasar City Government. Additionally, inter-regency roads would be developed jointly through shared national and regional budget allocations.
"There is no economic growth without strong infrastructure support. That is why infrastructure must be a strategic programme for regional governments," he said.
Meanwhile, the Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) recorded that investment realisation in Bali in 2024 reached Rp36.5 trillion. Nearly 50 per cent of that investment was located in Badung Regency.