DENPASAR — Bali Governor Wayan Koster reaffirmed that the implementation of the Kerthi Bali Economy must serve as the fundamental pillar for Bali to achieve economic self-reliance and food sovereignty. He delivered the statement while opening the High-Level Meeting of the Regional Inflation Control Team (TPID) and the Regional Financial Digitalization Acceleration and Expansion Team (TP2DD) of Bali Province at the Bank Indonesia Representative Office Auditorium in Denpasar on Tuesday (February 10).
According to the Governor, Bali’s economic development must be rooted in local wisdom inherited from its ancestors and implemented consistently from upstream to downstream.
“Upstream, the government must formulate regulations that favor local small and medium industries (IKM) and cooperatives as the drivers of Bali’s economy. Downstream, we must ensure that these industries absorb local resources, and that consumers truly purchase local products. It is this economic circulation within Bali that will make our economy self-reliant,” he stressed.
He underlined the importance of building an integrated economic strategy that bridges macroeconomic policy and microeconomic strengthening. Micro, Small, and Medium Enterprises (MSMEs), small industries, and cooperatives must be continuously empowered as the backbone of the regional economy.
“We must study and implement the Kerthi Bali Economy seriously. If realized properly, Bali will truly become economically independent and sovereign in food,” he added.
During the meeting, the ITB graduate revealed that Bali’s economy has shown positive performance, recording economic growth of 2.58 percent. The highest inflation rate was recorded in Denpasar City at 3.60 percent, while the lowest was in Badung Regency at 1.09 percent.
On a month-to-month (m-to-m) and year-to-date (y-to-d) basis, Bali recorded a deflation of 0.34 percent, indicating that price pressures remain relatively controlled. Nevertheless, he emphasized the need to strengthen TPID synergy to maintain price stability and purchasing power.
Governor Koster noted that this achievement reflects the cumulative efforts of all economic actors—from the provincial, regency, and municipal governments down to villages—as well as the real sectors such as hospitality, restaurants, MSMEs, and creative industries, rather than reliance on extractive natural resources like mining regions.
Food Sovereignty Key to Inflation Control
In the context of inflation control, Governor Koster emphasized that the food sector remains the primary contributor to inflation. Therefore, food sovereignty must be strengthened through increased local production, supply certainty, and smooth distribution channels.
He reaffirmed the Bali Provincial Government’s commitment to promoting local products through the implementation of Bali Governor Regulation No. 99 of 2018 on the Marketing and Utilization of Local Agricultural, Fisheries, and Industrial Products. The policy has proven effective in stimulating the local economy, including boosting demand for traditional Balinese endek woven fabric, benefiting artisans and traders.
The Governor also highlighted that Bali’s stable political, security, and social environment serves as a crucial foundation for sustainable economic growth. Bali ranks among the top five provinces nationally in terms of economic growth, despite its heavy reliance on tourism, which contributes approximately 60 percent to the region’s Gross Regional Domestic Product (GRDP). Stable international and domestic tourist arrivals continue to support the island’s economy.
Meanwhile, Head of Bank Indonesia’s Bali Representative Office, R. Erwin Soeriadimadja, stated that Bali’s inflation rate as of January 2026 remains within the national target range of 2.5 ± 1 percent, despite increased volatility in several strategic food commodities. He emphasized the need to strengthen TPID synergy through the 4K strategy: supply availability, price affordability, smooth distribution, and effective communication—particularly ahead of the Nyepi Day and Eid al-Fitr holidays.
Bank Indonesia also appreciated the Bali Provincial Government’s efforts to accelerate regional financial digitalization through TP2DD, which is expected to enhance economic efficiency, improve financial transparency, and strengthen Bali’s economic resilience and sustainability.
Additionally, Deputy for Food Availability and Stabilization at the National Food Agency (Bapanas), I Gusti Ketut Astawa, emphasized that inflation control in Bali is closely linked to strengthening regional food security and sovereignty. Strategic commodities such as rice, chili, shallots, and horticultural products remain key contributors to inflationary pressure.
He called for stronger local production, optimization of government food reserves, and improved interregional distribution cooperation. Bapanas encouraged consistent synergy among local governments, the state logistics agency (Bulog), regional food enterprises (BUMD), and business actors to ensure sufficient supply, stable prices, and smooth distribution—especially ahead of major religious holidays.***
