Bali Economy

Three decades ago, the Balinese economy was largely based on agriculture. Now tourism is the largest industry, making Bali is one of Indonesia’s wealthiest regions. However, the economy suffered significantly as a result of the terrorist bombings of 2002 and 2005 when tourism to the island sharply decreased. It is only now beginning to recover.

The principal cities are the northern port of Singaraja, the former colonial capital of Bali, and the present provincial capital and largest city, Denpasar, near the southern coast. The town of Ubud, with its art market, museums and galleries, is the cultural center of Bali.

Although tourism on the island of Bali is the economy’s largest industry, agriculture, particularly rice production, is still the island’s biggest employer. A significant number of Balinese are also fishermen. Bali is also famous for its artisans who produce batik and ikat cloth and clothing, wooden carvings, stone carvings and silverware.

Although significant tourism exists in the north, center and east of the island, the Bali tourist industry is overwhelmingly focused in the south. The main tourist locations are the town of Kuta and the newer development of Nusa Dua.

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