Money & tax · Bali

Koster: Bali relies heavily on tourism, revenue sits in the south

Bali's governor told national lawmakers that three regencies generate most of the province's own revenue. He called for new growth centers and a broader economy.

News of Published in DOMA News: 2 min read

Key points

  • Denpasar, Badung and Gianyar earn about Rp 10.9 trillion in PAD, the other six about Rp 2.3 trillion
  • Around 66 percent of the local economy ties to hotels, restaurants and related sectors
  • All Bali rice fields are planned to go organic by 2028 at the latest

The gap between south and the rest

Governor Wayan Koster spoke to the House budget committee during a working visit on 2 October. He said economic activity is concentrated in Denpasar, Badung and Gianyar. Together they raise about Rp 10.9 trillion in PAD (the region's own revenue). Six other regencies, including Tabanan, Buleleng and Karangasem, collect around Rp 2.3 trillion.

Koster called the gap very wide and said new growth centers are needed so activity does not keep piling up in the south.

Dependence on tourism

Bali's economy grew 5.82 percent in 2025. Some 7.05 million foreign visitors arrived by air, and with domestic trips the total reached 16.3 million. Bali's tourism foreign exchange earnings are put at Rp 176 trillion, or 55 percent of the national figure.

By Koster's estimate, about 66 percent of the local economy is linked to hotels, restaurants and related businesses. Deputy committee chair Syarief Abdullah Alkadrie added that second-quarter 2026 growth was 5.78 percent year on year, with accommodation and food service making up 21.91 percent of regional GDP.

What is proposed

Officials are betting on farming. The governor said around 70 percent of Bali's 64,000 rice fields already use organic methods, and a full switch is planned by 2028 at the latest. That is a stated goal. Support for local garlic, where a deficit persists, is also under discussion.

What it means for investors

The figures confirm that rental income is tied to visitor flow, so build a low-season scenario into your calculation. Compare areas by demand concentration: south Bali remains the main hub, while other regencies are still at the planning stage. Check which development projects are actually approved before you buy a plot.

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Q&A

Which Bali regencies generate the most PAD?

According to the governor, Denpasar, Badung and Gianyar together generate about Rp 10.9 trillion.

How much of Bali's economy depends on tourism?

Koster put it at roughly 66 percent of the local economy.

Source
NusaBali, published October 3, 2026, language: Indonesian

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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