Bali is one of the most beautiful places on earth and hence the investments from foreign countries are mostly focused on tourism and real estates. The island enjoys a very unique combination of natural beauty, cultural diversity, and economic potential. On the other hand, the political environment in Indonesia is set to influence, to some extent, the investment climate in Bali, considering the probable involvement of the central government in regulating and facilitating the island’s development.
The General Elections Commission (KPU) officially declared Prabowo Subianto the winner of the 2024 Presidential Election with a wide victory on March 20, 2024. It was the announcement after five weeks of waiting for confirmation by the KPU. Prabowo and his running mate, Gibran Rakabuming Raka, secured their victory with a double-digit margin last month. Riding on the cojson the coattails of President Joko “Jokowi” Widodo, who had led the country through a rigorous development drive, resonant mostly with young voters, further boosted their success.
Prabowo Subianto secured a remarkable 58.58 percent of votes, outperforming competitors Anies Baswedan and Ganjar Pranowo, claiming victory in 36 of 38 provinces, including areas previously backing Jokowi. Anies garnered significant support in Aceh and West Sumatra but fell short in Jakarta, while Ganjar failed to win any province. Prabowo’s triumph has stirred both optimism and apprehension, raising questions about his potential impact on Indonesia’s economy, democracy, and foreign relations, as well as challenges like COVID-19, the new capital project, and environmental issues.
The focus now turns to how Prabowo will foster development in tourism and real estate, particularly in Bali, and balance local and national interests, alongside domestic and foreign investments. This article will delve into the expected outcomes of Prabowo’s presidency for Bali’s investment landscape, offering insights and recommendations for investors navigating the evolving political climate.
Let’s talk about Prabowo
The victor of the 2024 Indonesian presidential election, Prabowo Subianto, has experienced a dramatic political makeover in terms of representation. He was first presented as a super-nationalist, chauvinist, Islamist populist and was then recast into a technocratic personage with an amiable face. His controversial past—from a military and realpolitik alliance—would be no less than what his presidency, hence Indonesia’s policy and governance, was going to be built on.
A dark past
After Suharto’s fall, Prabowo Subianto fled to Jordan, keeping a low profile as Indonesia transitioned into a democratic age in the new millennium. During this period, the ex-military figure was banned from entering the US and Australia due to his human rights record.
He has been accused of involvement in atrocities in East Timor and Papua during his military tenure. His marriage to Suharto’s daughter and close ties to the regime have fueled further allegations.
Three times the charm
Prabowo Subianto’s quest for the presidency in Indonesia has been marked by two unsuccessful bids, the first in 2014 and the second in 2019. In the 2014 election, he contested against the popular figure Joko “Jokowi” Widodo, focusing on nationalist rhetoric and strong leadership. Despite a fierce campaign, Prabowo narrowly lost, and his allegations of election fraud were dismissed due to lack of evidence, setting the stage for a prolonged rivalry in Indonesian politics.
The 2019 presidential election saw a similar outcome for Prabowo, who once again faced off against Jokowi. His campaign centered on themes of nationalism and economic development, yet he failed to secure victory. After challenging the results in court, his claims of fraud were rejected, underscoring the uphill battle of unseating an incumbent president in Indonesia’s political landscape.
Despite these setbacks, Prabowo’s political evolution from a fiery nationalist to a more pragmatic leader culminated in his success in the 2024 election, where he secured nearly 60% of the vote. His ascent to the presidency comes with high expectations, but lingering concerns persist regarding his human rights record, adding complexity to his leadership as Indonesia’s new head of state.
Prabowo Vision & Mission
Prabowo Subianto has expressed his vision and mission for Bali in his official document, as well as in his speeches and interviews. According to his document, Prabowo aims to make Bali a “world-class tourism destination” that can compete with other global destinations, such as Singapore, Dubai, and Maldives. He also aims to make Bali a “center of excellence” for culture, education, and innovation, that can contribute to the advancement of Indonesia and the world.
But the main thing is Prabowo will likely to continue what Jokowi has done. Prabowo Subianto has expressed a commitment to continuity in several key policy areas, building upon the foundations laid by outgoing President Joko “Jokowi” Widodo. Prabowo aims to continue Jokowi’s ambitious projects, such as the construction of the new US$32 billion capital, Nusantara, in Borneo, continuing to open Indonesia’s foreign invesments. While remaining somewhat vague, Prabowo’s foreign policy appears to align with Jokowi’s administration. He emphasizes domestic prosperity as a way to establish a stronger global presence.
While for Bali for Bali will continue the development of Bali’s first Light Rail Transit as well as some of his plans from the campaign such as:
Infrastructure development
Prabowo’s anticipated policy direction is poised to prioritize infrastructure development in Bali, aimed at attracting investors and international tourists. This vision includes reviving projects such as the new airport in Buleleng, which was previously cancelled under the Jokowi/Megawati regime.
The cancellation of the planned new airport in Buleleng, Bali, primarily stemmed from objections voiced by Megawati, the leader of PDIP, one of Indonesia’s major political parties, and a former president. Megawati’s opposition was reportedly based on concerns that the new airport would exacerbate overcrowding issues in Bali.
Notably, given the complex political landscape in Indonesia, there are speculations that Prabowo, who has had a contentious relationship with Megawati, might consider reviving the airport project partly as a means to challenge her stance. This dynamic adds another layer of intrigue to the airport’s fate, as the personal and political dynamics between key figures like Prabowo, Jokowi, and Megawati continue to influence major development decisions in the country.
The proposed new airport in Buleleng, Bali, held significant promise for driving real estate investment and catalyzing the island’s development. The prospect of improved transportation infrastructure typically spurs interest from investors looking to capitalize on emerging opportunities in the real estate market.
Additionally, initiatives like the development of the Gilimanuk-Mengwi Toll Road are anticipated to be central to Prabowo’s infrastructure agenda for Bali. This project aims to improve transportation connectivity between the western and central regions of the island, enhancing accessibility for both locals and tourists. By providing a faster and more efficient route, the toll road facilitates smoother logistics and travel, thereby stimulating economic activity and development along its corridor.
Bali’s first Light Rail Transit (LRT) system are expected to feature prominently in Prabowo’s infrastructure agenda. By enhancing transportation networks and connectivity, these projects not only facilitate smoother travel within Bali but also bolster the island’s appeal as an investment destination and tourist hotspot. Prabowo’s commitment to advancing such infrastructure endeavors underscores his strategy to stimulate economic growth and capitalize on Bali’s potential as a key player in Indonesia’s development landscape.
Continue Jokowi’s foreign invesment policy
Jokowi’s reputation for an open policy welcoming foreign investors has indeed contributed to Indonesia’s economic growth, and it’s anticipated that Prabowo’s administration would likely continue this approach. Such a stance bodes well for Bali’s real estate market, as increased foreign investment often translates to heightened interest in property development.
Bali, with its allure as a tourist destination and potential for various investment opportunities, stands to benefit significantly from a continued influx of foreign capital under Prabowo’s leadership. With the right policies and support mechanisms in place, the real estate market in Bali could experience sustained growth, attracting both domestic and international investors eager to capitalize on the island’s potential.
Conclusion
In conclusion, Prabowo Subianto’s presidency is poised to have a significant impact on Bali’s investment opportunities, particularly in the real estate sector. With a vision focused on continuing and expanding upon Jokowi’s infrastructure initiatives, such as the development of the Gilimanuk-Mengwi Toll Road and Bali’s first Light Rail Transit system, Prabowo aims to enhance transportation connectivity and stimulate economic growth on the island.
The revival of projects like the new airport in Buleleng, previously cancelled due to political opposition, underscores Prabowo’s commitment to advancing Bali’s development agenda. Furthermore, Prabowo’s continuation of Jokowi’s foreign investment policy is expected to bolster Bali’s real estate market, attracting both domestic and international investors eager to capitalize on the island’s potential.
