Bank Indonesia recommends downstream industries to spread Bali investment

Buleleng — Bank Indonesia’s Bali office has recommended developing processing industries for agricultural and marine products in North Bali, including coffee and fisheries, as part of efforts to reduce the concentration of investment in southern Bali.

Why it matters: Businesses and investors considering North Bali will be affected by the proposed focus on processing local agricultural and marine commodities rather than relying only on raw-product sales.

The recommendation was reported in connection with a Bank Indonesia discussion on Bali’s economic development. The central bank identified downstream processing, stronger connectivity and improved supply chains as measures that could support more balanced growth between the island’s northern and southern regions.

Reports on the discussion said investment in Bali remained concentrated in the southern area known as Sarbagia, covering Denpasar, Badung, Gianyar and Tabanan. The draft figure of Rp30.49 trillion, or 81.64% of Bali’s investment, could not be independently confirmed from the official Bank Indonesia material found for this verification and is therefore not included.

North Bali, particularly Buleleng, has been urged to build value-added industries around local agricultural and marine commodities rather than relying mainly on the sale of unprocessed products. The recommendation is relevant to investors and businesses assessing opportunities outside Bali’s established southern tourism and commercial centres.

Bank Indonesia’s Bali economic report projects the province’s economy to grow by 5.4% to 6.2% in 2026, while identifying investment as one of the components supporting economic activity. The report does not establish a specific implementation deadline for the North Bali measures.

Sources

• Bank Indonesia
• Bali Post
• detikBali
• Tribun Bali