Bali Promotes Northern Processing to Narrow Investment Gap

Denpasar — Bali is promoting processing industries in the northern region, including for coffee and fisheries products, after South Bali accounted for IDR 30.49 trillion (about US$1.86 billion), or 81.64% of the island’s investment in 2026, a Nov. 6 report said.

The initiative is being advanced by Bank Indonesia’s Bali representative office as part of an effort to reduce the concentration of economic activity in South Bali. The focus is Buleleng, whose agricultural, marine and fisheries resources include coffee, cloves, grapes, tuna and milkfish.

The products are often sold as raw materials, limiting the value retained in their areas of origin. Bank Indonesia says processing them locally could increase economic value, create business opportunities and expand employment while helping local products enter hotel and restaurant supply chains.

Why the investment gap matters to Bali’s northern economy

The report said the Sarbagia area — Denpasar, Badung, Gianyar and Tabanan — contributes 58% of Bali’s regional gross domestic product. Its investment concentration has left northern Bali with a smaller share of economic activity, despite its supply of agricultural and marine commodities.

Achris Sarwani, head of Bank Indonesia’s Bali representative office, said Buleleng needs to move beyond selling raw materials by developing processing industries. Bank Indonesia has used the Balinomics forum to connect Buleleng’s local government with businesspeople and investors experienced in processing industries.

The effort also includes stronger north-south physical and digital connectivity, sustainable tourism in northern Bali and improved supply chains for local commodities. Fisheries officials cited tuna and shrimp as products that already compete in global markets, while saying that wider export access is still needed.

The report said the intended result is for Buleleng to become a processing base rather than only a supplier of raw materials. It did not state a deadline for investment projects or identify a specific facility that has already been approved.