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BI forecasts stable economy for Bali
Amid the current global economic slowdown and the lead up to next yearâs elections, bankers forecast a stable economy for Bali
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mid the current global economic slowdown and the lead up to next year's elections, bankers forecast a stable economy for Bali.
Benny Siswanto, head of Bank Indonesia (BI) for Bali and Nusa Tenggara region, told participants at the annual bankers' meeting in Denpasar that he was hoping to see significant growth in the island's economy despite the present global and national situation.
He further said that economic growth for Bali and Nusa Tenggara would reach 5.60 percent by the end of 2013, as compared to 4.01 percent the previous year.
'There will always be a silver lining in the dark clouds. The weakening of the rupiah against the US dollar and other foreign currencies has made Bali's exports more competitive,' Siswanto said.
The banker also said that the island's tourism performance had been quite promising.
'Foreign tourist arrivals already reached 2.67 million by October. We are optimistic we can welcome more than 3 million foreign tourists to the island,' he said.
Siswanto said strong household and government consumption, which reached 69.05 percent, had supported the island's economy.
Investment growth stood at the high level of 15 percent. Investments have been focused on various major infrastructure projects, such as the construction of a toll road and massive renovation of Ngurah Rai International Airport.
Bank loans grew 25 percent in 2013. Banks in Bali had a loan deficit ratio (LDR) of up to 75 percent, while inflation is forecast at 7.44 percent until the end of 2013. He also said that credit growth was
expected to stand at 24 percent this year.
'2014 will be a political year with two national elections ' presidential and legislative. Based on our previous experiences, elections run quite smoothly without major disturbances. We are not expecting the elections to have a significant impact on the national economy,' said Siswanto.
Bali Governor Made Mangku Pastika said in his speech read by I Ketut Wija, assistant II of the provincial administration for economic affairs, that he felt very optimistic about the island's economic condition in 2013.
'Tourism remains our economic driver with a steady increase in the number of foreign tourists, targeted to reach more than 3 million people,' the governor said.
The crucial challenges in tourism, he said, were to improve the quality of tourist destinations and tourist facilities on the island. 'Increasing tourists' length of stay in Bali is also important,' Pastika said.
The province still faces many social and economic problems, including a high unemployment rate of 45,380 people or 1.87 percent of the island's total workforce.
Meanwhile, the number of people living below the poverty line reached 162,510. Around 14,397 do not have proper housing.
'Bali has been praised for reducing unemployment to the lowest national level, while the island could also reduce poverty to the second lowest in Indonesia,' Pastika said.
However, people should not be unemployed on the resort island. 'We have abundant work here, especially in tourism. Nobody should live without proper jobs,' the governor said, hoping that the banking and property sectors would support employment opportunities and provide access to housing.
