Bank Indonesia outlines plan to narrow Bali’s north-south economic gap
Bank Indonesia proposed better connectivity, sustainable northern tourism and downstream processing to reduce Bali’s economic concentration in the south.
By Mukmin John
Editor: Mursyid Sonsang
· 2 min read
Buleleng — Bank Indonesia’s Bali office outlined three measures on Thursday, Nov. 5, 2026, to reduce the concentration of economic activity in southern Bali and strengthen growth in the north, including Buleleng.
The proposals were presented at the BALINOMICS forum in Buleleng. They call for better north-south connectivity, higher-quality and sustainable tourism in northern Bali, and greater value from marine, fisheries and agricultural products through downstream processing.
The figures show the scale of the imbalance. The Sarbagia area in southern Bali accounted for 58 percent of the province’s gross regional domestic product. Investment was also concentrated there: realization reached Rp 30.49 trillion (about US$1.9 billion), representing 81.64 percent of Bali’s investment during 2026.
Why it matters to readers in Bali
For foreign residents and visitors, the proposals point to a gradual attempt to broaden Bali’s economic map beyond the established southern tourism corridor. Better links could improve the movement of people, goods and services between the two halves of the island, while sustainable tourism would seek to expand northern destinations without treating visitor numbers as the only measure of success.
More processing of agricultural, fisheries and marine products would mean that goods produced in northern Bali could generate more local economic value before reaching markets. The approach also connects tourism with other sectors rather than making the north dependent on tourism alone.
Bank Indonesia said the northern strategy should use Buleleng’s existing strengths in agriculture, fisheries, culture and tourism. Reporting on the forum also said development should protect the environment, including coastal ecosystems, because Bali’s natural assets remain central to its tourism appeal.
The imbalance is not limited to investment. Buleleng’s economic growth has been reported as lagging behind Bali’s overall growth, while the north has less developed transport access and tourism infrastructure than the south. The proposed measures therefore combine infrastructure, tourism and productive industries rather than relying on a single project.
Sources
Read next
More on this story
Explainers & Data
Bali Assessment Places Buleleng First and Badung Last
Bali’s 2026 assessment put the average score across its nine regencies and municipalities at 77,27. Buleleng ranked highest and Badung lowest.
Most read in Explainers & Data
Related
