BI reveals Bali's economic momentum supported by household consumption

Denpasar (ANTARA) - The Bank Indonesia (BI) Bali Representative Office has revealed that economic momentum on the Island of the Gods as of July 2026 is being supported in part by household consumption, signalling a positive outlook for growth this year in line with the rising consumer confidence index.

“This is in line with the public’s increasingly positive perception of economic conditions,” said Head of BI Bali Representative Office Achris Sarwani in Denpasar, Bali, on Thursday.

According to him, public purchasing power remains maintained amid conducive price developments, in line with Bali’s inflation realisation in July 2026 remaining low and within the national target range at 2.42 percent.

This condition is supported by maintained supply as well as declining prices of a number of strategic food commodities, thereby strengthening the public’s positive perception of consumption capacity and future economic prospects.

The central bank recorded that in July 2026, Bali’s consumer confidence index (IKK) based on survey results increased to 126.3, higher than the previous month’s figure of 121.5.

He added that Bali’s IKK is also higher than the national IKK, which was recorded at 116.8, and explained that an index result above 100 reflects public optimism.

BI Bali noted that public optimism remains high, with the current job availability index compared to six months ago reaching 132.

The current income index compared to six months ago was also high at 128.5, while the current durable goods consumption index compared to six months ago reached 106.5.

Meanwhile, the consumer expectation index (IEK) also increased from 123.7 in June 2026 to 130.3 in July 2026, or grew by 5.4 percent on a monthly basis.

Bali’s economic growth in the second quarter of 2026 grew by 5.78 percent, higher than the first quarter of 2026 at 5.58 percent.

This growth was also above the national economic growth of 5.29 percent, supported by increased construction, trade and agricultural activity, as well as continued tourism activity during the school holiday period and a series of major religious holidays.

“We will continue to strengthen synergy with regional governments in accelerating sustainable economic growth through the Regional Economic Growth Acceleration Team (TP2ED) and the Regional Inflation Control Team (TPID) as well as other agencies,” said Achris.