Paradigm Shift: Bali Moves to Develop Industrial Zones

Paradigm Shift: Bali Moves to Develop Industrial Zones
Photo by Christopher Burns on Unsplash.
Tourism is a double-edged sword. When times are good and visitor numbers are high, stakeholders are more than happy to reap the rewards.

But when times take a different direction and the world’s economy grinds to an unprecedented halt, tourism – and the money it generates – can quite literally stop overnight and so can a lot of people’s livelihoods.

Bali’s dependency on the tourism industry is a case in point.

Don’t put all your eggs in one basket

Bank Indonesia (BI) claim “tourism contributes between 54 percent and 58 percent to the province’s economy” according to a recent article in Coconuts Bali. Some observers would suggest between 60 to 70-percent of the island’s population are somehow involved with tourism.

That’s an awful lot of eggs to be putting into one basket. Especially as we know being overly dependent on something you can’t control makes you vulnerable.

Tourism – in Bali and everywhere else – is influenced by market fluctuations (US-China Trade War), natural events (in Bali that means volcanic eruptions and earthquakes), political agendas (travel warnings) and states of emergency (COVID-19 lockdowns) all of which have a significant impact on how and where people travel.

And these days nobody seems to be travelling anywhere fast.

A blessing in disguise?

Maybe this vulnerability is a blessing in disguise. Maybe it’s an opportunity to reset Bali’s economy and to diversify so there are different baskets with different eggs.

There’s been a lot of talk recently about redirecting Bali’s focus towards quality rather than mass tourism. This is good. Let’s hope the tourism industry takes the opportunity seriously. But tourism is only one part of a possible long-term solution.

That’s why we’re delivering smart, collaborative, relevant and progressive investment and business solutions that have a positive impact on clients, partners, employees and local communities. We’re focusing on what matters most to them today as well as future-proofing them so doing business in here is more relevant, efficient and effective.

Incentives for industry

Antara News is reporting that on a national level “the government is readying additional incentives for the industrial sector grappling with the COVID-19 pandemic to inject new momentum into businesses.” This includes tax breaks and waivers on electricity payments.

It also dovetails into solving Bali’s dilemma of diversification.

Industrial Development Zones

Bali Puspa ran a piece a few days ago around a discussion between the Regional House of Representatives (DPRD) and the Department of Industry and Trade (Disperindag) about something called the Bali Provincial Industrial Development Plan (RPIP).

This seems to be opening the doors to a more diverse future for Bali’s economy because specific areas have been designated as industrial development zones.

According to Bali Puspa these are: Pengambengan in Negara; Candikusuma in the district of Melaya in Jembrana Regency and Celukan Bawang in the regency of Buleleng.

Head of the Bali’s Department of Industry and Trade I Wayan Jarta explained to local news wires that this regulation did not rule out the possibilities of other Regencies developing industrial zones.

Unity in Diversity: One Island One Management

In an apparent reference to Governor Koster’s “One Island, One Management” initiative Jarta went on to explain that industries would be developed alongside the potential and suitability of each region and district with the idea of working together as one united Bali.

This makes sense. So what kind of industrial zones and development are we likely to see and will there be incentives to attract both domestic and international investment?

Bali Puspa explain there are five leading industries, which have been identified and approved by the DPRD for the 2020 – 2040 development plan. These are:

  • the food industry (coffee, cashew, coconut and cocoa processing, fish and meat and alcoholic beverages.)
  • the pharmaceutical and cosmetic industries (natural/ herbal options, especially being used in the spa and wellness sectors.)
  • the textile and textile products industry (TPT).
  • the handicraft industry (wood, bamboo handicraft, and metal handicrafts.)
  • and fifth the electronics and telematics industry (software, animation, gaming and automotive.)

There are already plans being rolled out for an electric vehicle factory in Jimbrana.

The development of other industries has not been ruled out and each Regency is being given the opportunity to develop according to their resources and priorities.

Special Economic Zones

We’re of the opinion developing specific areas for education and IT as well as a Special Economic Zone (SEZ) would also be a smart move.

The IAS Gazette say “according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2019, SEZs are specific geographically delimited areas within which governments facilitate industrial activities, through providing infrastructure support outside the zone, fiscal and regulatory incentives.

Think special export processing zones, reliable infrastructure support, relief from customs duties and tariffs that promote a business-friendly environment – all constructed with the purpose of conveniently bringing multiple companies into one geographical location.”

There are currently 13-SEZ’s across Indonesia.

Regional cooperation and the bigger picture

Coordinator of the Bali Provincial Industrial Development Plan, Nyoman Budi Utama explained to Bali Puspa the Bali Branding Culture-Based RPIP was developed with a Regional approach in mind.

The initiative, he said “should not only be based on a regional approach and administrative boundaries (for example, a Regency / City area), but also based on a regional approach that is more functional, which often means cross-regional, and that is the province’s authority.”

Nobody can predict the future, but we believe Bali has a great deal of potential and that’s why we think this is an exciting time to be here. We see a great deal of opportunity with positive and creative mindsets that can cut through the fear and doom and gloom and find the silver lining in this tumultuous time of change.

Sources: Bali Puspa, Coconuts Bali, Detik, Gapura Bali, Antara News, Bank Indonesia, The IAS Gazette, UNCTAD

Find out how we can help you and your business. Send an email to:

#sevenstones, #sevenstonesindonesia, #balitourism, #baliindustry, #balidevelopment, #baliinvest, #investbali, #indonesiainvest, #paradigmshift, #businessinbali, #balipolitics, #bali, #indonesia

Latest Article
Govt Allocates More Subsidies for Electric Motorcycles
According to reporting from Antara News, Dadan Kusdian, Indonesia’s Secretary General of the Ministry...
Netherlands Consider Easier Visas for Indonesians
Citing Antara News, Tempo is reporting that Indonesia and the Netherlands discussed strengthening consular...
Ministry to Implement KRIS at 3,060 Hospitals by 2025
Indonesia’s Health Ministry is targeting to get more than 3,000 national hospitals to implement...
Hospital-based Specialist Doctor Program Launched
Speaking at the launch of a hospital-based specialist doctor program on Monday (6/5/24,) Indonesia’s...
Indonesia Anticipates Prabowo’s Cabinet
Prabowo Subianto and Gibran Rakabuming Raka will be sworn in as the country’s new president and vice...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

[wpforms id=”43785″]

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.