Head of Bank Indonesia's (BI) Economic Development Advisory Division in Bali, Azka Subhan Aminurridho told Antara News recently there were positive indicators that Bali's economy will experience accelerated growth in Q1 of 2018 in the range of 5.73% to 6.13%.

Azka went on to say this growth is being boosted by encouraging results across all economic sectors in terms of consumption, exports, agriculture, investment and tourism, as well as being tied to the decreasing activity of Gunung Agung, which disrupted tourist arrival numbers to Bali at the end of 2017 and dragged economic growth down to 4.01%

Tourism is responsible for boosting the food and beverage industry, transportation, construction and trade among others and with a number of airlines opening direct flights to Bali in recent months servicing the Philippines, India and China, the outlook is being seen as positive.

There are, however, other factors responsible for this economic progress besides tourism.  According to Antara News an increase in the minimum wage by over 8% encourages household consumption and trade.

Exports are also on the rise with Bali's major trading partners of the United States, Japan and Australia. Azka said the "development of export markets for alternative goods to the Middle East and Russia and services to India, Germany and France" are also contributing factors.

The performance of the agricultural sector has been boosted by the recent opening of Bali's biggest dam at the Titab Reservoir in Buleleng, which is not only used to supply PDAM's water supply and irrigation for farmers but also serves as a hydroelectric power plant.

Infrastructural projects too are contributing to growth, confidence and investments. These are being credited to the forthcoming IMF-World Bank Annual Meeting scheduled to be held in Bali in October and include the Ngurah Rai International Airport's two new aprons and airport underpass.

Sources: Antara Bali, Bank Indonesia, ITSN Repository, Buleleng Government Tourism Office

This article was first published on Gapura Bali

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