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Bali’s Economy to Remain Strong until End of the Year
08/31/2010
SME's and Tourism Business continue to drive Bali's Economy with Experts Calling for More Emphasis on Agricultural Sector.
The booming industry of Tourism and the fast growing numbers of foreign investors coming in and around Indonesia has proven its fighting skills in the world of growth for economy. Basing on the projections that was released by the Denpasar office of Bank Indonesia (BI), the Jakarta Post had reported that Bali's economy is expected to stay rich and robust through the end of the year 2010.
Bank Indonesia's Bali based economist, Jeffrey Karipuan said that they had been optimistic of the what Bali's economy has made since the year started and seems to remain strong following its solid performance during 2009.
“Since the third quarter last year, the growth reached 4.17 percent". He even cited a small scale enterprise or small – medium sized enterprises as the other factor that added a positive effect in the island's economy. Adding that “he SMEs also dominate bank loans, with 80 percent of total loans disbursed to the sector. They have proven to be resilient in facing crises."
Because of its wide choices of hotels, and restaurants the economic growth of Bali was further enhanced, citing at least 80% of all growth on the island. The Bank Indonesia, has given this warm statement.
Aside from the growing tourism, other factors that contributed to the growing economy of Bali is an increased in Agricultural sector at about 60 to 70% of the agricultural products consumed in Bali come from Java, West Nusa Tenggara and overseas.
Same with some of the bank loans in Bali, which increased at around 20 percent over 2009, compared to a 6% growth rate in loans nationally. Because of this, Economist had called out for a possible lagging on agriculture and therefore would like to have the Bali's government focus on lending a greater support to the agricultural sector by providing incentives to some farmers. Only 600,000 Balinese are estimated to still work the land in Bali with many shifting their source of employment to the hotel and tourism sectors.
Source from: http://www.balidiscovery.com/messages/message.asp?Id=5745
