Catalina Espinosa
Research expert covering society, economy, and politics for Europe and the EU
Bali - statistics & facts
Bali, arguably Indonesia’s most famous tourist destination, has boosted both Indonesia’s and its own economies through its tourism sector in the past decades. Due to the relatively affordable cost of living and the proposed introduction of a digital nomad visa for 2023, more people are considering a move to this tropical paradise. In 2024, Bali’s population reached over 4.4 million people.
Balinese culture and beliefs are closely tied to agriculture. Employing nearly 20 percent of Bali’s over 2.6 million workers, the agricultural sector has consistently been one of the main labor-absorbing sectors. The most important crop in Bali is rice, and much of its culture and myths have developed around rice as an important social force. Moreover, Balinese cuisine differs from the rest of Indonesia, which is mostly in line with halal dietary laws. However, beef cattle are sacred for Hindus, so pork is widely consumed in Bali and often served during cultural performances or ceremonies. More than 33 percent of pork production in Indonesia is from Bali, making it Indonesia’s largest pork-producing province.
For the past two decades, however, Bali’s booming tourism sector has eclipsed the other sectors of its economy, leading to some unintended consequences. Bali’s residential property price index has steadily increased in the past few years. Many developers and residents who move here build private houses and hotels with swimming pools in the middle of an active agricultural area. Paddy fields, or the land for the irrigation system Subak, are currently being converted at an alarming rate in Bali, with an average of about 550 hectares of land each year. Legislation on protecting agricultural land has yet to catch up with Bali’s rapid tourism development. Moreover, a lack of subsidies and high land taxes have prevented farmers from defending their land. These issues highlight the importance of regulations to ensure that tourism development does not come at the expense of the agricultural sector, fostering a sustainable economy for Bali in the coming years.
Balinese religion, culture, and traditions
While Indonesia is a Muslim-majority nation, nearly 87 percent of Balinese are Hindus. In fact, Bali has one of the smallest Muslim populations in the archipelago and is the only part of Indonesia that remains predominantly Hindu. The Balinese follow a form of Hinduism known as Agama Hindu Dharma and spend, on average, over 80 thousand Indonesian rupiah per capita on cultural and religious traditions.Balinese culture and beliefs are closely tied to agriculture. Employing nearly 20 percent of Bali’s over 2.6 million workers, the agricultural sector has consistently been one of the main labor-absorbing sectors. The most important crop in Bali is rice, and much of its culture and myths have developed around rice as an important social force. Moreover, Balinese cuisine differs from the rest of Indonesia, which is mostly in line with halal dietary laws. However, beef cattle are sacred for Hindus, so pork is widely consumed in Bali and often served during cultural performances or ceremonies. More than 33 percent of pork production in Indonesia is from Bali, making it Indonesia’s largest pork-producing province.
The importance of the agricultural and tourism sectors in Bali
Bali's agricultural sector supports the island's tourism sector in various ways, from offering picturesque views of the rice fields to promoting the recently established agrotourism industry. This sector has a history of withstanding adversities; it continued to experience significant growth after Bali’s past social crises, such as the Bali Bombings of 2003 and 2005 and the 2008 financial crisis. When the tourism sector collapsed during the COVID-19 crisis, many workers switched to other industries, including the agricultural sector, resulting in higher numbers of agricultural workers since 2020. It is expected that Bali's agriculture sector will continue to support the island's economy.For the past two decades, however, Bali’s booming tourism sector has eclipsed the other sectors of its economy, leading to some unintended consequences. Bali’s residential property price index has steadily increased in the past few years. Many developers and residents who move here build private houses and hotels with swimming pools in the middle of an active agricultural area. Paddy fields, or the land for the irrigation system Subak, are currently being converted at an alarming rate in Bali, with an average of about 550 hectares of land each year. Legislation on protecting agricultural land has yet to catch up with Bali’s rapid tourism development. Moreover, a lack of subsidies and high land taxes have prevented farmers from defending their land. These issues highlight the importance of regulations to ensure that tourism development does not come at the expense of the agricultural sector, fostering a sustainable economy for Bali in the coming years.
