Money & tax · Bali

Bali economy seen growing up to 5.9% in 2026, Bank Indonesia says

Bank Indonesia's Bali office said on 23 October 2026 in Denpasar that the island's economy could expand by as much as 5.9% this year, up from 5.82% in 2025. The forecast matters for anyone modelling rental income or planning a property purchase on the island.

News of Published in DOMA News: 3 min read

Key points

  • Bank Indonesia projects Bali growth of up to 5.9% for 2026, versus 5.82% recorded in 2025.
  • Growth was 5.58% in the first quarter and 5.78% in the second, third-quarter data is due in early November.
  • The central bank expects inflation to stay inside its 1.5-3.5% target range.
  • Governor Wayan Koster puts tourism at roughly 66% of the economy and says growth could top 6%.
5.9%Bank Indonesia growth forecast for Bali in 2026
5.82%Bali's recorded economic growth in 2025
7.05 millionforeign tourists arriving by air in 2025, excluding cruise passengers
66%tourism's share of Bali's economy, per the governor

What happened

On Friday, 23 October 2026, at the Temu Wirasa 2026 gathering in Denpasar, Achris Sarwani, head of Bank Indonesia's representative office in Bali, presented the regulator's outlook for the province. Bank Indonesia expects Bali's regional output to grow by up to 5.9% in 2026. The island's economy grew 5.82% in 2025, so the forecast implies a modest acceleration.

Sarwani said growth and stability on the island need to be protected consistently and jointly by the authorities, businesses and the central bank. The number remains a projection: the final result will only be known once fourth-quarter statistics are published.

The quarterly numbers

According to BPS (the national statistics agency) for Bali, the economy grew 5.58% in the first quarter of 2026 and 5.78% in the second. The third quarter has not been counted yet, with BPS expected to release the figure in the first week of November 2026.

The central bank expects inflation to remain within its 1.5-3.5% target band. That is a stated goal rather than a result: earlier reports put Bali's annual inflation in September above the top of the band, and the regulator spoke of stepping up price measures.

Bank Indonesia names investment, household consumption, government spending and agriculture as the pillars of growth. Its projection draws on surveys of households, retailers, businesses and the property market, plus activity data from PLN (the state power utility), PDAM (regional water utilities) and ASDP (the state ferry operator) that track the movement of goods and passengers.

What the governor said

Bali Governor Wayan Koster, speaking at the same event, estimated tourism's contribution to the island's economy at about 66%. He said growth in 2026 could exceed 6%. In 2025, he noted, around 7.05 million foreign tourists arrived by air, excluding cruise passengers, while domestic visitors numbered 9.3 million.

For comparison, the governor cited 2019, when 6.28 million foreign visitors came to the island. He put current foreign arrivals at 22,000 to 25,000 people a day.

Provincial policy priorities

Koster listed the areas he believes underpin growth: using locally grown agricultural produce, supporting UMKM (micro, small and medium enterprises), making the island self-reliant in energy, tackling congestion while promoting environmentally friendly transport, and building infrastructure.

His stated aim is to keep money circulating within Bali along the whole chain, from producers to end buyers. This is a policy position, no new regulations or deadlines were announced at the meeting.

Context

The forecast lands after a difficult October. In the first half of the month the island suffered a fuel shortage with long queues at petrol stations, and Bank Indonesia had earlier assessed its effect on growth and inflation. Tour operators reported no notable drop in arrivals at the time, and the regulator now confirms it still expects the year to accelerate.

For the property market, a growing economy and a growing visitor count mean sustained demand for rentals and services. Yet tourism's share of about two thirds of the economy is also the main vulnerability: any external shock to flights or visa rules hits villa owners' income directly.

What happens next

In the first week of November 2026 BPS Bali is due to publish third-quarter growth, which will show whether the year is tracking the 5.9% forecast. Watch monthly inflation too, since the regulator has committed to keeping it inside the 1.5-3.5% band.

What it means for investors

A growth forecast is not a villa price forecast, so run the numbers on your own asset. Check occupancy and average nightly rates for your villa, or a comparable one, over the third quarter of 2026 and compare them with the BPS release in November. Build the 66% tourism share into your model: a 10% drop in arrivals would cut short-term rental income by more than it cuts the wider economy. Inflation inside the 1.5-3.5% band points to moderate increases in staff, electricity and maintenance costs, anything above the band starts to erode yields. We verify rental licences and operating costs before a deal so the yield calculation rests on facts rather than a projection.

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Q&A

Is the 5.9% figure already confirmed by statistics?

No. It is a Bank Indonesia projection. Only the first quarter (5.58%) and second quarter (5.78%) of 2026 have been measured. BPS Bali will release third-quarter data in the first week of November.

How dependent is Bali's economy on tourism?

Governor Wayan Koster estimates tourism at about 66% of the island's economy. In 2025 roughly 7.05 million foreign tourists arrived by air, excluding cruise passengers, alongside 9.3 million domestic visitors.

What does this mean for a villa owner's costs?

The central bank expects inflation within a 1.5-3.5% band. If that holds, staff, electricity and maintenance costs should rise moderately. Track actual monthly inflation in the BPS releases.

Source
Antara Bali, published October 23, 2026, language: Indonesian
Also checked: Antara News

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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