TEMPO.CO, Denpasar - The Bank Indonesia Bali Representative Office stated that the province’s economy will continue recovering from the COVID-19 pandemic albeit the increase in fuel prices may raise inflation.

“The fuel price hike will cause an increase in inflation, but will not have a significant impact on Bali's economic growth,” said the Bank Indonesia Bali Office Head Trisno Nugroho in Denpasar, Sunday, September 19, 2022.

The Statistics Indonesia or BPS of Bali Province recorded that the province’s economy in the second quarter of 2022 grew by 3.04 percent (yoy), while the inflation in August 2022 was recorded at 6.38 percent.

“So, taking into account the trend of economic growth and the rising inflation rate at a reasonable level, it is estimated that the economic recovery process in Bali will continue and Bali will not experience stagflation,” Trisno added.

He also stated that in the tourism industry, the increase in fuel prices will lead to rising transportation fares and hotel room rates so that tourism spending becomes more expensive.

For domestic tourists, declining budget allocation for tertiary spending and rising travel costs will drop their ability to travel to Bali although the interest in tourism remains high.

“The number of people from Java Island traveling to Bali via road trips with private vehicles is decreasing, thus slowing the trend of domestic tourist visits in Bali,” said Trisno.

ANTARA

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