BALINEWSID.COM, DENPASAR — Bali’s economic growth, which has consistently outpaced national growth, has yet to fully translate into improved public welfare, particularly for workers. Low wages remain a major concern despite tourism continuing to serve as the island’s main economic engine.

Member of Commission III of the Indonesian House of Representatives (DPR RI), I Nyoman Parta, has highlighted the gap between Bali’s economic performance and workers’ minimum wages. He said economic development should deliver fairer benefits to society, especially workers who play a crucial role in the tourism industry.

Parta pointed to Bali’s minimum wage, which stands at around Rp3.2 million per month, compared with the province’s estimated decent living needs (KHL) of approximately Rp5.2 million, as cited by the Ministry of Manpower.

“When the government says Bali’s decent living needs are Rp5.2 million, while workers actually receive Rp3.2 million, Bali’s workers are effectively short by Rp2 million every month,” Parta said during a discussion on labor issues.

He argued that the current formula for determining minimum wages should not rely solely on three factors—economic growth, inflation and companies’ ability to pay.

According to Parta, the term “ability to pay” needs a clearer and more measurable standard so that it cannot be used as a justification for keeping workers’ wages low.

“Inflation can be calculated, and the government can calculate it. The government has the figures for economic growth. But the ability of companies to pay is vague,” he said.

Parta’s concerns come amid Bali’s strong economic performance. Economist and tourism observer Trisno Nugroho said Bali’s economy had grown by 5.48 percent in 2024 and accelerated to 5.82 percent in 2025.

In the first quarter of 2026, Bali’s economy grew 5.58 percent year-on-year, followed by 5.78 percent growth in the second quarter. Full-year growth in 2026 is projected at around 6.1 percent.

Trisno delivered the assessment during the public dialogue “Meneropong Bali dari Sisi Berbeda” (Looking at Bali from a Different Perspective), held as part of the 14th anniversary of the Indonesian Online Journalists Association (IWO) and the first anniversary of IWO Bali at the Bali Tourism Office on Sunday (Aug. 30, 2026).

Despite the positive figures, Trisno warned Bali not to become complacent. Heavy reliance on a single economic engine could become a structural vulnerability if the tourism sector slows down.

He said Bali should not abandon tourism. Instead, tourism should be used as a large market capable of stimulating other sectors of the local economy, including agriculture, fisheries, micro, small and medium enterprises (MSMEs), the creative economy and the digital economy.

The approach is closely linked to Parta’s concerns over workers’ welfare. Strong tourism performance, he argued, should not only be reflected in tourist arrivals and economic growth but also in the industry’s ability to provide decent living standards for its workforce.

Parta cited hotel occupancy in Bali, which he said has averaged above 72 percent. However, he questioned why such strong business performance has not been reflected in workers’ wages.

“Bali has struggled for a long time with wages of Rp3.2 million, even though it is a tourism destination and the jobs are largely tourism-related,” Parta said.

He also highlighted Bali’s high cost of living, particularly in tourism-driven areas. Workers, he said, face not only everyday expenses but also rising living costs in areas where tourism has pushed up prices.

Parta therefore called for labor regulations that can better address the gap and provide stronger and fairer protection for workers.

Trisno, meanwhile, stressed that Bali’s future economic development must be based on greater local value creation, stronger links between sectors, equal opportunities, regional equity and ecological limits.

He proposed five potential new engines of economic growth for Bali: value-added food production, the creative economy, the digital economy, health and education, and the green economy.

These sectors, he said, could form a more resilient economic portfolio and reduce Bali’s dependence on a single sector.

Parta also urged the government to take a stronger role in ensuring fairness for workers. He said Balinese people’s tendency to maintain social harmony and stability should not allow workers’ welfare issues to be overlooked.

“Because there is peace, the government must be present to provide justice for them. The law must respond to those needs,” Parta said.

The views expressed by Parta and Trisno underline a broader challenge facing Bali: economic development can no longer be measured solely by headline growth figures.

Economic growth must also translate into greater local value added, wider access to opportunities, better-quality jobs and improved living standards.

Ultimately, Bali’s economic success should not be measured only by tourist arrivals or growth rates, but by how much of the economic value remains and circulates within the island—and how significantly it improves the quality of life of its people.