REPUBLIKA.CO.ID, DENPASAR -- The Bali economy is projected to grow by 6.0 to 6.5 percent this year, fueled mostly by the tourism sector, the local office of Bank Indonesia (BI) said.

"Our economic activities will increase in 2015 following the recovery of the economies of the United States, Europe and Australia," head of the BI office in Bali province, Dewi Setyowati, stated here on Tuesday (6/1).

The improving global economy will contribute to the economic growth in Bali and will serve to boost it, she remarked.

Setyowati added that the robust growth will be attributed to high consumption, an optimistic investment climate, and export growth.

According to the results of a survey conducted by the central bank, strong consumption will play a significant role, which will, in turn, leave room for high expectations of income and economic growth this year, the BI official affirmed.

Moreover, the policy to grant visa-free facilities to tourists from China, Russia, South Korea, Japan and Australia from January 2015 will also contribute to the economic growth, she pointed out, adding that the visa-free policy was expected to attract more tourists from the five countries.

Setyowati further noted that the planned construction of roads to serve as shortcuts in strategic areas and a toll road linking Singaraja to Gilimanuk, as well as the repair of irrigation networks, will contribute to the economic growth.

The BI office also predicted that inflation in Bali in 2015 will drop from the 5.1 to 6.1 percent range last year. This estimation is based on the average inflation rate of 6.18 percent recorded in the last five years.

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