Bali economy grows 5.78% in Q2 2026, outpacing national average

Denpasar — Bali’s economy expanded by 5.78% year on year in the second quarter of 2026, outpacing national growth of 5.29%, according to the provincial office of Bank Indonesia and data from the Central Statistics Agency (BPS) Bali.

Bank Indonesia and BPS attribute the stronger performance to broad-based gains across most sectors, including household consumption, construction, trade, agriculture and tourism-related activities.

Household spending and tourism underpin growth

Reports from Bank Indonesia and the Finance Ministry’s regional treasury office for Bali indicate that household consumption remained an important driver of activity in the quarter, supported by stable inflation and resilient purchasing power.

BPS Bali data show that the province’s economy also grew 6.91% quarter on quarter in the April–June period, with nominal gross regional domestic product reaching about Rp89.27 trillion and Rp47.34 trillion in constant 2010 prices.

Tourism continued to play a key role in the recovery, with local media and Bank Indonesia officials noting that second-quarter growth was supported not only by visitor activity but increasingly by agriculture and construction as well.

Kepala Perwakilan Bank Indonesia Provinsi Bali Achris Sarwani has said that growth in the quarter was driven by almost all business fields, “except transport and warehousing,” which recorded a contraction.

Consumer confidence and inflation

Consumer sentiment in Bali remained strongly optimistic in mid-2026. Bank Indonesia survey results reported by a domestic financial news outlet show that Bali’s consumer confidence index reached 126.3 in July 2026, up from 121.5 in June, and stayed well above the nationwide reading of 116.8.

Separate reports on August data indicate that the consumer confidence index in the province eased to around 123.1 in August but remained comfortably above the neutral 100 level and higher than the national index, reflecting continued optimism about employment and income.

Price pressures remained manageable. Bali’s year-on-year inflation rate stood at 2.42% in July 2026, according to the Finance Ministry’s regional treasury office, which attributed the reading to stable prices and adequate supplies of key food commodities.

By August, inflation in the province had risen to 3.45% year on year, but local media and Bank Indonesia officials noted that this was still within the national target range and consistent with maintained purchasing power.

Outlook and structural challenges

Bank Indonesia projects that Bali’s economy will grow in a range of 5.4%–5.9% in 2026, supported by domestic demand, investment and tourism, while underpinned by efforts to keep inflation within the national target band.

Bank Indonesia and local media have highlighted ongoing structural issues behind the headline figures, including the heavy concentration of activity in the tertiary and tourism-related sectors and the dominance of investment in southern Bali.

According to statements cited by regional outlets, around 88% of private investment in Bali is still located in the southern region, leaving northern, eastern and western parts of the island with a much smaller share.

Authorities and economists have called for more balanced, inclusive growth through stronger links between agriculture, marine and fisheries, manufacturing, small enterprises and cooperatives, the creative and digital economy, and tourism, echoing the Kerthi Bali economic transformation agenda discussed at recent economic forums in Denpasar and other parts of the island.

Key figures

• 5.78%: Bali’s year-on-year economic growth in Q2 2026.
• 5.58%: Bali’s year-on-year growth in Q1 2026.
• 6.91%: Bali’s quarter-on-quarter growth in Q2 2026.
• 5.4%–5.9%: Bank Indonesia’s 2026 growth forecast for Bali.
• 126.3: Bali’s consumer confidence index in July 2026.
• 2.42%: Bali’s year-on-year inflation in July 2026.
• 3.45%: Bali’s year-on-year inflation in August 2026.

Sources

• Tribun-Bali – FORUM Balinomics 2026: Sinergi Menjaga Stabilitas dan Akselerasi Transformasi Ekonomi Kerthi Bali
• RRI Denpasar – Ekonomi Tumbuh 5,78 Persen, BI Dorong Pemerataan Investasi Non Bali Selatan
• Bank Indonesia – Laporan Perekonomian Provinsi Bali Agustus 2026
• Bali Post – Ekonomi Bali Tumbuh 5,78 Persen, Pariwisata Masih Mendominasi
• Terasbali News – IKK Bali Agustus 2026 Tetap Optimistis, Lebih Tinggi dari Nasional
• Lintasbali.com – Forum Balinomics TW II 2026 Dorong Transformasi Ekonomi Bali yang Lebih Inklusif dan Berkelanjutan
• Radar Buleleng – Ekonomi Menumpuk di Bali Selatan, BI Dorong Pemerataan Investasi
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• Nusantara Jaya News – BI Gelar Balinomics TW II 2026, Soroti Infrastruktur, Pariwisata, Sampah dan Diversifikasi Ekonomi
• Detik Bali – Ekonomi Bali Tumbuh 5,78 Persen, Sektor Transportasi Malah Turun
• Kabarnusa – IKK Bali Agustus 2026 Kokoh di Level 123,1, BI Pastikan Pariwisata dan Daya Beli Masyarakat Terjaga
• BCA Sekuritas – BI Bali: Geliat Ekonomi Ditopang Konsumsi Rumah Tangga
• Directorate General of Treasury, Ministry of Finance – Press Release: Realisasi APBN di Provinsi Bali s.d. 31 Juli 2026
• Bisnis.com Bali – Bank Indonesia Sebut Pertumbuhan Ekonomi di Kuartal II/2026 Berkualitas