Why Bali’s 2025 growth still depends on tourism-linked sectors

Bali’s economy is expanding, but its business base remains closely tied to tourism-linked activity. Bank Indonesia reported that the province grew 5.82% in 2025, with construction, trade, transport and warehousing, and accommodation and food services among the sectors supporting that performance; investment and household consumption also contributed.

How fast did Bali’s economy grow?

Bali’s economy grew 5.82% year on year in 2025, up from 5.48% in 2024, according to Bank Indonesia’s Bali economic report published in 2026. The fourth quarter of 2025 grew 5.86% year on year, compared with 5.88% in the third quarter, the same report said.

Which sectors are driving activity?

Bank Indonesia said the 2025 expansion was supported by stronger performance in construction, wholesale and retail trade, transport and warehousing, and accommodation and food services. The report links accommodation and food services and trade to continuing tourism activity, while construction reflects investment and building-related demand.

In the second quarter of 2025, accommodation and food services and wholesale and retail trade were identified as major sources of growth, according to Bank Indonesia’s August 2025 report. That report also said investment, exports and household consumption supported demand.

Is Bali’s growth creating jobs?

Bank Indonesia reported that Bali’s open unemployment trend had improved from February 2021 through November 2025. It said the largest additions in employment during the period were recorded in transport, accommodation and food services, trade and construction.

The pattern matters for businesses because it shows that growth is generating work beyond hotels and restaurants, including logistics, construction and retail-related activity. Bank Indonesia also said Bali’s human development index in 2025 rose and remained above the national average.

What does this mean for investment?

The figures point to an economy where tourism remains a major demand driver, but where investment opportunities and job creation also extend into construction, transport, trade and related services. Bank Indonesia projected Bali’s 2026 economic growth in a range of 5.4% to 6.2% year on year in its February 2026 report.

That projection is not a guarantee for any individual project. It is the central bank’s province-wide outlook, based on expected activity across sectors, including continued strength in tourism-related industries and agriculture.

What is the main business risk?

Bali’s sector mix means local performance remains sensitive to tourism flows and household demand. Bank Indonesia’s 2025 reports repeatedly identified tourism-related accommodation and food services as a key growth engine, while also noting contributions from investment, consumption and exports.

Sources

• Bank Indonesia
• BPS-Statistics Indonesia Bali Province