Bali Faces Severe Economic Losses Following Worst Flooding in Years
Bali, Indonesia – The popular tourist destination of Bali has been struck by its worst flooding in years, resulting in significant economic damage and loss of life. The Bali Disaster Mitigation Agency (BNPB) confirmed that heavy rains on September 9 and 10 triggered floods and landslides across Denpasar and six of Bali’s eight regencies, including Gianyar, Tabanan, and Badung. The disaster claimed 17 lives and led authorities to declare a week-long state of emergency to address the crisis.
Economic Impact and Damage Assessment
As of September 12, BNPB estimated the economic losses at approximately Rp 28.9 billion (roughly USD 1.9 million), with damages concentrated in public facilities, commercial buildings, and residential properties. The floods destroyed 474 kiosks and shophouses along Sulawesi Street and at Kumbasari Market, accounting for damage worth Rp 25.5 billion. Additional losses include damage to 29 buildings in Tabanan valued at Rp 3.1 billion and various affected structures in Bangli. Assessments are ongoing for other regencies impacted by the flooding.
The Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI) reported extensive damage to small villas, particularly in Badung regency, marking the first time Bali has experienced flooding of such severity in recent memory. The tourism-dependent region now faces concerns over the short- and long-term effects on its vital hospitality sector.
Government Response and Presidential Visit
President Prabowo Subianto visited Bali on September 13 to inspect the flood-hit areas and meet affected residents, especially in Denpasar’s Gerenceng neighborhood where residents described how the Badung River overflowed rapidly. President Prabowo assured locals of government support for immediate aid and long-term disaster preparedness efforts.
“We will help you with everything,” the President told one resident, emphasizing ongoing aid distribution and plans to strengthen infrastructure and disaster risk management to prevent future flooding incidents.
Environmental Factors and Land Conversion
Environmental experts have pointed to overtourism and overdevelopment as underlying causes of Bali’s increased vulnerability to flooding. The local environmental group Walhi highlighted alarming rates of agricultural land conversion to commercial use between 2018 and 2023. For instance, more than 2,600 hectares of farmland in Tabanan—the island’s largest rice producer—were lost to development, alongside 1,100 hectares in the tourism-heavy Badung region.
Made Krisna Dinata, director of Walhi Bali, warned that this loss of productive farmland and natural water absorption areas has worsened flooding risks. Another environmentalist, I Made Iwan Dewantama of the Abdi Bumi Foundation, criticized construction near critical river buffer zones, stressing that the disappearance of these buffers allows floodwaters to spread uncontrollably.
Initially skeptical that land conversion contributed to the disaster, Bali Governor I Wayan Koster later reversed his stance following a coordination meeting with the central government. He announced an immediate halt to the conversion of productive land into commercial facilities, including hotels and restaurants, to safeguard remaining farmland.
Environment Minister Hanif Faisol Nurofiq underscored the importance of monitoring and restricting unnecessary land clearing that reduces water retention capacity. He called for investments in sustainable infrastructure to manage water flow and reduce future disaster risk.
Looking Ahead: Economic and Social Concerns
Experts warn that the recurring floods could undermine Bali’s economic growth, worsen poverty, and reduce the island’s competitiveness as a tourist destination. I Made Sara, an economist at Warmadewa University, highlighted that the high costs of disaster recovery could strain local budgets and deepen social vulnerabilities.
Ida Bagus Raka Suardana, an economist from Denpasar’s National Education University (Undiknas), emphasized tourism’s sensitivity to natural disasters, noting that cancellations and disruptions can cause significant financial impacts. Tourism Ministry data indicates international visitors spent an average of US$1,500 per trip in 2024, underscoring the sector’s critical importance to local livelihoods.
To mitigate future flood impacts, experts advocate for stricter land-use controls, investment in green infrastructure such as improved drainage systems and small reservoirs, and revitalization of traditional irrigation networks like Bali’s subak system. Additionally, disaster risk financing mechanisms including insurance schemes could offer financial protection for small businesses in tourism-related sectors.
Conclusion
Bali’s recent flooding disaster highlights the urgent need for coordinated efforts to address environmental degradation and adapt to climate challenges. With strong government action and sustainable development policies, the island hopes to restore its economic resilience and safeguard the welfare of its residents and millions of visitors each year.
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