Bali shifts investment focus toward UMKM, green growth and local value

Denpasar — Bali is sharpening its development pitch around local enterprises, greener growth and a broader economic base, according to provincial materials and a separate report on the island’s investment direction. The provincial Cooperatives and UKM office says the government is pushing its Transformasi Ekonomi Kerthi Bali strategy to place IKM, UMKM and cooperatives at the centre of a people-based economy from villages to cities.

The provincial office said on 10 September 2026 that Bali’s economic planning is no longer focused solely on tourism. In its six priority sectors, tourism is described as a downstream effect, while upstream sectors such as agriculture, marine affairs, industry, UMKM and cooperatives are being strengthened first.

The same office also said Bali is advancing green business initiatives through the TUMBUH programme, short for Transformasi Usaha Menuju Bisnis Unggul dan Hijau, and the formation of a Green Economy Consortium. It added that the strategy is tied to the province’s Nangun Sat Kerthi Loka Bali vision.

UMKM support and financing

The province’s support for small businesses is also visible in financing data published by the Cooperatives and UKM office. On its website, the office said KUR realisation in Bali reached Rp8.98 trillion in 2025, or 82.76% of a Rp10.85 trillion target, with 114,921 borrowers.

The office said the figure was part of a push to accelerate and optimise KUR distribution. It also listed UMKM legal literacy, business mentoring, digitalisation, export access and marketing of agricultural products among its programme priorities.

Those measures point to a policy emphasis on building local capacity rather than relying on tourism alone. The official materials present UMKM and cooperatives as core pillars of Bali’s economic resilience.

Investment still welcome, but with a higher bar

A separate report by Orient Press Wire said Bali is seeking investment that complements local participation, supports environmental safeguards and avoids displacing small businesses in sectors traditionally dominated by UMKM. The report described the policy direction as selective rather than a rejection of foreign capital.

The report said the strongest opportunities are being framed around boutique tourism, wellness, ecotourism, renewable energy, creative industries, healthcare, education and export-oriented agribusiness. It also cited solar power and distributed energy solutions as areas of interest as demand grows from hospitality and residential users.

According to the same report, Bali Governor I Wayan Koster has argued for development that protects local enterprises and cultural integrity while still attracting what the report called quality foreign investment. The report also said authorities are paying closer attention to licensing compliance, land use and the protection of productive rice fields.

For investors, the message is that proposals are likely to be judged not only on capital size, but also on local supply-chain participation, jobs and environmental impact. Provincial materials and the report both point in that direction, though they describe policy intent rather than a single new investment law.

Reported investment themes

• Tourism: boutique, wellness, ecological and culturally focused projects.
• Diversification: renewable energy, creative industries, healthcare, education and agribusiness.
• Local economy: UMKM, cooperatives, village-level production and market access.

Separately, Bali’s investment agency says the province is pursuing a roadmap for a greener, more resilient and more prosperous economy. That framing matches the provincial push to keep investment aligned with local business growth and environmental goals.

Sources

• Dinas Koperasi dan UKM Provinsi Bali
• Orient Press Wire