DENPASAR, DEWATA.NEWS – The economy of Bali is projected to maintain strong and resilient growth in 2026 despite ongoing global economic challenges, according to Bank Indonesia (BI).
Bank Indonesia’s Bali Representative Office forecasts Bali’s economic growth to range between 5.4 and 6.2 percent in 2026, exceeding growth levels recorded in several previous years. The outlook reflects continued recovery momentum and strengthening domestic fundamentals.
Muhamad Shiroth, Deputy Director of Bank Indonesia’s Bali office, said on Friday, January 2, 2026, that the positive projection is supported by solid investment activity, stable household purchasing power, improvements in the agricultural sector, and the acceleration of quality-focused tourism development.
“Strong coordination between the central government, regional authorities, and key stakeholders remains essential to sustaining Bali’s economic growth momentum,” Shiroth said.
At the national level, Indonesia’s economy continues to show relatively stable performance despite global headwinds, including slower global growth, high interest rates in advanced economies, and rising global financial system risks. While these factors also affect Bali, BI assessed that the province’s economic fundamentals remain strong, supported by household consumption, investment, and tourism activity.
From an inflation perspective, Bank Indonesia projects Bali’s inflation rate in 2026 to remain within the target range of 2.5 percent ± 1 percent. Inflation control is supported by smooth food distribution, adequate supply of key commodities, and coordination between central and regional inflation control teams (TPIP and TPID) through the National Movement for Food Inflation Control (GNPIP).
Meanwhile, credit distribution in Bali is expected to grow between 8 and 12 percent in 2026, driven by pro-growth policies, the strengthening of micro-financing ecosystems, and government programs aimed at boosting liquidity and economic activity.
As of October 2025, credit growth in Bali stood at 5.95 percent year-on-year, with 42.40 percent of total credit allocated to micro, small, and medium enterprises (MSMEs). During the same period, Bali’s non-performing loan (NPL) ratio was recorded at 1.24 percent, indicating relatively healthy banking conditions.
Bank Indonesia also highlighted several structural challenges that require attention, including Bali’s high dependence on tourism, overtourism risks, agricultural land conversion, and gaps in financial and digital inclusion.
To address these issues, future strategies are expected to focus on strengthening leading sectors beyond tourism, accelerating quality tourism, maintaining inflation control, expanding inclusive financing, and speeding up payment system digitalization.
With strong policy coordination and ongoing economic transformation, BI expects Bali’s economy in 2026 to not only achieve higher growth but also become more resilient and inclusive in the long term.