Bali’s investment climate continues to show strong growth momentum, supported by increasing investor confidence and a steady rise in key economic sectors. A recent survey by Bank Indonesia (BI) revealed that optimism among businesses remains high, helping sustain the island’s economic expansion, which grew 5.95% year-on-year in the second quarter of 2025. The trend signals that Bali is maintaining a healthy and productive investment environment.
Deputy Head of BI’s Bali Representative Office, Butet Linda Helena Panjaitan, emphasized that business optimism plays a crucial role in sustaining regional growth. “Our assessment of the business sector shows that investment in Bali remains very strong. Most business players are confident that the economy will continue to grow positively and plan to expand, especially in the construction and tourism sectors,” she said at the Kerthi Bali Sadhana Investment Center (PIKBS) on October 22.
Investor Confidence Strengthens Bali’s Economic Growth
The Bali investment climate reflects strong investor trust and continued expansion across multiple sectors. BI’s latest report shows increased activity in the construction industry, with rising sales of cement and building materials serving as clear indicators of ongoing investment. According to Butet, “The focus remains in the accommodation sector, including hotels, villas, and other tourism facilities. This shows that the business community still sees Bali as a highly promising investment destination.”
The growing momentum also extends to supporting industries. BI noted that sectors such as culinary services, transportation, and construction support are seeing renewed interest. These developments contribute to strengthening local value chains and improving business productivity. Butet added that one of Bali’s key advantages lies in its high cost efficiency compared to the national average. “Investment costs in Bali are relatively lower than the national level. This means with smaller capital, investors can achieve more productive results,” she said.
Kura Kura Bali SEZ and Sanur SEZ Drive Regional Expansion
The two Special Economic Zones (SEZs) in Bali, Kura Kura Bali SEZ and Sanur SEZ, have become major engines of regional investment. BI highlighted that both zones rank among Indonesia’s top four SEZs in investment performance. During the Balinomics event on October 17, Butet Linda Helena Panjaitan said, “Kura Kura Bali SEZ and Sanur SEZ are among the top four SEZs with the best investment achievements nationwide. This is an important foundation for Bali Province to boost its regional economy.”
According to BI data, the Sanur SEZ focuses on wellness tourism and has attracted IDR 5.3 trillion in investment while creating 4,677 jobs, largely through the development of the Bali International Hospital. Meanwhile, the Kura Kura Bali SEZ, centered on premium sustainable tourism, recorded IDR 1.06 trillion in investments and 2,796 jobs by mid-2025. “They complement each other. Sanur captures the health tourism market, while Kura Kura develops premium, sustainable tourism deeply rooted in Balinese culture,” Butet explained.
Supporting Sectors and Local Businesses Benefit
Beyond large-scale developments, Bali’s investment growth is fueling opportunities for small and medium enterprises. BI observed a positive multiplier effect, particularly around Kura Kura Bali SEZ, where creative economy activities are thriving. “Many creative economy activities have grown around the Kura Kura area. This provides an important contribution to Bali’s overall economic growth,” Butet noted.
Supporting sectors such as food services, transport, and construction are also benefiting from the expansion. With Bali’s efficient investment costs and improving business productivity, local enterprises are better positioned to join the value chain and contribute to sustainable regional development.
Challenges and the Road Ahead
Despite strong progress, BI acknowledged that several structural challenges remain. These include the need for streamlined licensing and the preparation of investment projects that are clean and clear. Butet underlined the importance of efficiency and alignment with long-term development goals. “Bali has huge potential. However, we must ensure that the investment process runs efficiently and aligns with the region’s development goals. That way, incoming investments will not only be large in volume but also high in quality and sustainability,” she said.
Sustaining Inclusive Growth Through Strong Investment
With robust investor optimism, cost efficiency, and the development of strategic zones like Kura Kura and Sanur, Bali is set to maintain its upward growth trajectory. BI remains confident in the island’s resilience. “Strong and high-quality investments will become the main foundation for Bali’s inclusive and sustainable economic growth,” Butet concluded.
Bali’s evolving investment landscape shows that the island is not only a world-class tourism destination but also a model for sustainable regional economic development driven by innovation, efficiency, and local collaboration.
Source: nusabali.com, balipost.com
Image: Getty Images
