Money & tax · Bali

Bali's economy grows 5.78% in Q2 2026 as hospitality shrinks

Bank Indonesia's Bali economic report shows 5.78% year-on-year growth in the second quarter of 2026. That beats the national rate, yet accommodation and food services contracted.

News of Published in DOMA News: 2 min read

Key points

  • Bali grew 5.78% versus 5.29% for Indonesia
  • Accommodation and food services shrank 5.17% amid Middle East tensions
  • BI expects Bali to grow 5.4% to 5.9% in 2026

Growth picked up

In its August 2026 Bali Provincial Economic Report, Bank Indonesia says the island's economy expanded 5.78% year on year. Growth was 5.58% in the first quarter, and Indonesia as a whole grew 5.29% in the second.

Construction, including government and private projects, and agriculture were the main drivers. ANTARA reported that the Bali and Nusa Tenggara region grew 6.10%, with Bali contributing 2.77 points.

Tourism under pressure

Accommodation and food services contracted 5.17%. BI links this to Middle East tensions that reduced foreign tourist arrivals.

Even so, the central bank says unemployment stayed low, with new jobs concentrated in agriculture, trade and accommodation.

Inflation and lending

Bali's inflation was 3.27% year on year in the second quarter, up from 2.81% in the first. It remains within the 2.5% plus or minus 1 point target.

Lending accelerated, especially investment loans. Small and medium businesses hold 41.69% of loans, which grew 6.11%. For full-year 2026, BI projects Bali's growth at 5.4% to 5.9%.

For the wider Bali and Nusa Tenggara region, BPS data credited mining, trade and public administration with supporting growth.

What GRDP means here

GRDP (gross regional domestic product) measures all goods and services produced in the province. Year-on-year growth compares a quarter with the same quarter a year earlier.

Tourism makes up a large part of Bali's economy, so a contraction in accommodation stands out against overall growth. For now, growth is coming from other sectors, construction above all.

What it means for investors

Bali's headline growth rests on construction and farming, while hospitality dipped in the second quarter. For a villa owner, that means watching actual occupancy and average nightly rates in your own area rather than the island-wide growth figure. Ask your management company about guest mix by country and how demand moved month by month.

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Q&A

How fast did Bali's economy grow in Q2 2026?

By 5.78% year on year according to Bank Indonesia, against 5.29% nationally. Accommodation and food services shrank 5.17%.

Source
Bank Indonesia, published September 15, 2026, language: Indonesian
Also checked: ANTARA Bali

Prepared by the DOMA editorial team from public reports, with the original source linked above. This is a news review, not legal or tax advice. Not a public offer.

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