Despite ongoing global geopolitical instability, an area in eastern Indonesia has unexpectedly become a major economic delivery.
Bali and the Nusa Tenggara islands recorded Indonesia’s highest economic growth in the first quarter of 2026, expanding by 7.93% year-on-year—significantly above the national average of 5.61%.
Mining Exports, Not Tourism, Drive Surge
The primary force is not tourism, but mining and exports from West Nusa Tenggara province.
According to the Central Statistics Agency, foreign exports from West Nusa Tenggara skyrocketed by 827% due to a relaxation of concentrate export permits for copper miner PT Amman Mineral Nusa Tenggara.
Consequently, West Nusa Tenggara’s own economy soared 13.64% in Q1.
“The high growth in the Bali-Nusra region is mainly driven by the growth of foreign exports from West Nusa Tenggara province, where foreign exports reached 827% ,” said Amalia Adhininggar Widysanti, Head of Central Statistics Agency.
School Holidays and Public Projects to Boost Q2
Looking ahead, the central bank of Indonesia projects that Bali’s economy will get a different kind of lift in the second quarter of 2026.
The school holiday season (June-July), combined with the peak harvest for rice and horticulture, is expected to boost domestic activity.
Key public projects are also supporting growth, including a new underpass in Jimbaran and a bridge connecting the Nusa Islands, totaling an estimated IDR 788 billion (approx. USD 50 million) in government investment.
Additionally, the religious holiday of Galungan in June is projected to increase local consumption.
Source: ANTARA News, cnbcindonesia
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