Recently, a new challenge to Bali’s development is ensuring equitable distribution of benefits. Tourism which is heavily concentrated in South Bali has created a significant economic disparity in other Bali’s regions.
While tourism in South Bali has flourished, other regions, particularly North, East, and West Bali, have remained relatively underdeveloped. This disparity has created economic imbalances and raised concerns about long-term Bali’s inclusive growth.
Improve Accessibility and Connectivity
The Bali Provincial Government is pushing forward with plans to unlock the economic potential of North, East, and West Bali. A key initiative in this strategy is the construction of a new airport in Buleleng Regency, North Bali. This project, although delayed, has garnered renewed hope with the recent support of President-elect Prabowo Subianto.
“We must not depend on one facility. If something happens, one airport cannot be used; there must be a backup airport,” Subianto said during his campaign in Buleleng, February.
Proponents believe the North Bali Airport will be a transformative force, fostering a new economic hub and significantly reducing unemployment by creating an estimated 200,000 jobs. Beyond job creation, the airport is envisioned as a critical infrastructure upgrade that will improve accessibility and connectivity across North, East, and West Bali. This enhanced connectivity is expected to positively impact logistics costs and access to basic necessities, ultimately boosting purchasing power for residents.
PT BIBU Panji Sakti, the private developer behind the North Bali International Airport, remains optimistic about the project’s completion. They anticipate finishing construction on the 900-hectare site by October 2026. The successful development of this airport has the potential to not only revitalize North Bali but also address the current economic disparity between South Bali and the rest of the island.
Catalyst for Business
The construction of the North Bali Airport is expected to generate significant economic activity throughout the region. The project itself will create job opportunities and will stimulate many industries. Once operational, the airport will act as a catalyst for further business development.
It aligns with the Indonesian Ministry of Tourism and Creative Economy’s goal to promote small-scale MICE (Meetings, Incentives, Conferences, and Exhibitions) activities throughout Bali. Currently, MICE activities are heavily concentrated in Badung and Denpasar, South Bali. Distributing these events to North Bali, East Bali, and West Bali, will spread the economic benefits of tourism more evenly.
Businesses and organizations seeking unique venues with a focus on cultural and natural beauty will discover exciting possibilities in North Bali and beyond. This infrastructure development, coupled with Bali’s rich cultural heritage and stunning landscapes, positions the island to become a more comprehensive and attractive MICE destination.
Beyond infrastructure projects aimed at diversifying tourist destinations and enhancing transportation links, the Bali provincial government is taking another step towards balanced development: fostering alternative business centers to attract investment. This initiative is further bolstered by the Bali Regional Legislative Council (DPRD Bali) who are currently drafting a regional regulation specifically designed to offer investment incentives and facilities.
Tjokorda Gede Agung, a member of the PDI-P in the Balinese Regional Parliament, explained the purpose of this draft regulation: “It aims to accelerate the growth of the Balinese economy by attracting both domestic and foreign investment through the provision of incentives and facilities.”
However, achieving balanced economic development requires careful consideration of environmental sustainability. Concerns have been raised regarding the potential impact of the North Bali airport construction on nearby rice paddies managed by local farmers. Sustainable practices are essential to not only preserve Bali’s natural beauty but also ensure its long-term prosperity.
Exciting Possibilities
Bali’s economic potential extends beyond the south. This presents interesting opportunities for businessmen and investors to contribute to Bali’s sustainable economic growth. By venturing beyond the established south, businesses can explore exciting possibilities in North, East, and West Bali. However, navigating a new business environment can be a complex process. To ensure a smooth entry and maximize your investment potential, consider partnering with an experienced local firm like Seven Stones Indonesia.
Our experts can guide you navigating the business landscape in Bali and assist with services ranging from company incorporation to financial management and immigration services. For example, when you plan to start your business journey in Bali and plan to establish your own company. Seven Stones Indonesia can ensure your compliance in legal matters, manage your financial solution, and find the right location for your registered office address. Reach out to us today or fill in the contact form below to discuss your business inquiry and let’s see how we can help you.
