Bali's Economy Minus 12 Percent, Governor Wayan: The Pandemic Impact Is More Powerful Than The Bali Bombings I And II

JAKARTA - Bali Governor Wayan Koster shared the devastating impact of the COVID-19 pandemic on the Balinese economy. In fact, the impact this time is even more devastating when compared to the economic situation in the aftermath of the Bali Bombing I and II tragedies.

"From existing experience, (the economy) has been disrupted due to terrorism, the Bali I bombing and the Bali II bombing, then the Mount Agung eruption, previously there was SARS. These incidents did not last long, were not on a large scale and the impact was not as severe (COVID-19 pandemic) right now," said Wayan Koster in a virtual discussion, Monday, March 1.

Wayan said, the impact of the pandemic was more devastating than the major events in Bali because this outbreak was widespread in 216 countries including countries that have been visiting Bali as tourists. The time period is very long. Thus, tourism in Bali automatically stops.

"Because there is a Minister of Law and Human Rights regulation which prohibits foreigners from traveling to the Unitary State of the Republic of Indonesia temporarily and this regulation is still in effect. So that automatically foreign tourists cannot visit Bali and also Indonesia in general," he said.

Meanwhile, said Wayan, the Balinese economy has long been dependent on tourism. In fact, more than 52 percent of tourism's contribution to Bali's GDP.

"So when tourism is normal, the economy is very good. So the growth is above the national average," he said.

As a result of the pandemic, said Wayan, hotels were empty and restaurants were empty of visitors. This condition affects the economy of Bali. So that for the first time in history, Bali's economic growth experienced the deepest contraction, reaching 12 percent.

"The lowest so far is in Bali and the lowest in 2020 among regions in Indonesia. This is the joy and sorrow of Bali as a tourist destination," he said.

Wayan also said that the pandemic would not only have an impact on tourism but also on other sectors which were derivatives of tourism, namely related to the absorption of local products.

"Folk crafts and agricultural products cannot be absorbed optimally because hotels and restaurants are still very minimal (visitors)," he said.