G20 Summit Pivotal to Bali’s Economic Recovery

The Group of Twenty (G20) has spotlighted Bali, which was hit hard by the Covid-19 pandemic over the last two years. There is great hope that this international attention will be pivotal in recovering Bali’s economy.

KOMPAS/FERGANATA INDRA RIATMOKO

Two residents prepare a penjor to be installed on the edge of Jalan I Gusti Ngurah Rai, Badung, Bali, Tuesday (8/11/2022). A total of 21 traditional villages in Bali established penjors to welcome guests from countries participating in the G20 Summit.

Johan (35), a resident of Kuta who has worked as an on-demand transportation driver for nine years, said that the two years of the pandemic had been the most difficult since he moved to Bali.

“During the pandemic, it felt like Bali couldn’t do anything. The [province] relies heavily on the tourism sector and it really slumped when the pandemic hit. I had to do anything I could just to be able to eat,” said the father of two, who hails from Flores.

Johan had to sell the car he had worked so hard to buy. His children actually didn’t want him to sell the car, but they realized they had no more money.

“I even sold my car. We didn’t have any [money] for food or to pay school fees. It couldn’t be helped, we didn’t have anything to eat,” he recalled.

Johan’s wife tried to make money by selling basic necessities, but the business could not thrive because their neighbors were experiencing the same difficulties.

He is now trying to start anew with an on-demand transportation service that uses car rentals. Renting a car in Kuta costs Rp 250,000 per day.

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He is optimistic that Bali’s economy will recover, with one way being the upcoming G20 Summit.

“My hope is that the G20 Summit will create opportunities that spur Bali’s economic recovery. It looks like the economy is beginning to pick up [again]. Hopefully, the event will be a success and have a good impact on Bali,” he said.

Johan’s thinking is simple: The G20 Summit is a forum of heads of state; if the event is successful, foreign leaders can tell their citizens that Bali is an enjoyable tourist destination, so many foreign visitors will come to Bali.

In the past two weeks, Johan has transported people to shop for souvenirs around 20 times. They included people from Jakarta, who Johan guessed were helping with the preparations for the G20 Summit. His daily income has increased by 30 percent.

KOMPAS/FERGANATA INDRA RIATMOKO

The electric vehicles to escort and transport guests from countries participating in the G20 Summit passes on Jalan I Gusti Ngurah Rai, Badung, Bali, Tuesday (8/11/2022).

Ayu Adnyawati (52), an employee of a Balinese gift shop outside Nusa Dua in Badung regency, also said that her shop had been affected by the lack of tourism in Bali due to Covid-19. Her shop made no income during the height of the pandemic, she said, but customers had started visiting her shop again after international flights to and from Bali were reopened in March 2022.

“Visitors are starting to flock to Bali. We can trade again, though it isn’t as busy as it was before the Covid-19 pandemic,” said Ayu.

Speaking from her experience, Ayu said that the international meetings held in Nusa Dua might not have a direct impact on souvenir sale. Nevertheless, she hoped that the G20 Summit in Nusa Dua would have a positive impact on Bali and Indonesia as a whole.

“Hopefully, international visitors will be more confident about Bali,” she said.

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The people’s many hopes and prayers are not baseless. The Balinese economy has started to improve. Several state institutions noted that Bali’s economy had been on a positive growth trend in the second half of 2022. Even so, the growth rate has been only a third of normal conditions in Bali before the pandemic.

Statistics Indonesia (BPS) noted that the Balinese economy grew 8.09 percent year-on-year in July-September 2022. According to Bank Indonesia records, Bali’s economy contracted minus 9.31 percent in 2020 from the previous year. The local economy slowed further in 2021 but entering 2022, it growth has been positive.

The G20 Summit is expected to boost Bali’s economic growth. The accommodation and food and beverage sectors are the main pillars, followed by agriculture, construction and trade.

The Balinese people welcome this event. It is hoped that the summit will run smoothly so the economy can return to normal.

“The G20 will contribute about 1 percent of Bali’s GDP [growth domestic product],” Trisno Nugroho, the head of Bank Indonesia’s Bali branch, said on Monday (7/11) in Denpasar.

According to him, visitors arriving for the G20 Summit had contributed to stronger growth. Decorative bamboo poles (penjor) now adorn 21 traditional villages in Bali to welcome visitors. Prayers for the success and smooth running of the G20 Summit also fill the air, along with the smell of incense.

“The Balinese people welcome this event. It is hoped that the summit will run smoothly so the economy can return to normal,” said Made Arbawa, from the Bali indigenous community agency.

The global summit of state leaders, to be held on 15-16 Nov. in Bali, not only reflects the nation’s prestige. The international activity it brings is also expected to boost Bali’s recovery from the pandemic.

This article was translated by Kesya Adhalia.