According to Balibisnis, Foreign Direct Investment (FDI) dominated Bali’s investment realization in 2024, with a value of IDR 10.6 trillion. This represents 59.2% of the total investment in the Island of the Gods, which reached IDR 17.99 trillion.
Throughout 2024, investment in Bali will be dominated by Foreign Investment (FDI) with an investment value of IDR 10.6 trillion, which contributes 59.2% of the total investment in Bali of IDR 17.99 trillion.
Head of Bank Indonesia Representative for Bali Province, Erwin Soeriadimadja, explained that the high number of FDI shows that Bali remains an attractive investment destination for global investors.
Based on the distribution of investment by district/city, Bank Indonesia noted that 88% of investment is still concentrated in South Bali, covering Badung Regency, Denpasar City, Gianyar Regency, and Tabanan (Sarbagita).
Badung Regency is the largest recipient with an investment of Rp 9.34 trillion (51.9%), followed by Denpasar City which received Rp 3.27 trillion (18.2%), and Gianyar Regency which was recorded at Rp 2.89 trillion (16.1%).
However, the dominance of investment in the Sarbagita area shows low investor interest in developing projects in the North, East, and West Bali regions. This has led to a large urbanization flow towards Sarbagita, given the large number of jobs available in the region.
In the second quarter of 2024, the investment sector that attracted the most attention was the construction of hotels and restaurants, followed by the housing sector, industrial estates, offices, and public services such as electricity, gas, and water, as well as trade and repair.
Erwin revealed that even though Bali dances investment, there are still challenges in developing quality investments, such as the case of foreign investors who are already operating but do not yet have a valid permit.
In addition, the conversion of agricultural land, violations of the use of green open space, and the problem of Regional Legal Land (LSD) are also obstacles.
On the other hand, Antaranews reports, the Badung Regency Government seeks to overcome the inequality in investment distribution by offering investment opportunities in the tourism sector in the central and northern regions, in order to create economic equity.
“We hope that investors will not only focus on the southern region, but also look at the central and northern regions,” said Assistant for Economy and Development of the Badung Regency Regional Secretariat, Ida Bagus Gede Arjana.
Badung Regency has vast economic potential, divided into three main areas: coastal tourism in the south, agriculture in the middle, and plantations in the north.
One of the potentials that can be developed is agro-tourism in the northern region, especially in the Pelaga area, Petang District, which offers cool air and beautiful scenery above 700 meters above sea level.
Even so, the southern region of Badung, including Kuta, Legian, Seminyak, Nusa Dua, and Canggu, remains a top destination for domestic and foreign tourists, which makes it more attractive to investors.
The Badung Regency Government seeks to attract more investment in the central and northern regions by providing easy services such as Public Service Malls and an online single submission (OSS) licensing system.
Sources: Balibisnis, Antaranews
image: via OutlookBusiness
