The fight against corruption in Indonesia
In Bali, corruption is deeply rooted in the system, exacerbated by very low civil servant salaries. When problems arise, even seemingly intractable ones, many people turn to corruption, which is seen as almost inevitable. Indeed, Indonesia is regularly ranked among the world's most corrupt countries. Under Suharto's regime, corruption reached new heights with "crony capitalism", which encouraged the embezzlement of public funds and nepotism. His family and associates amassed a colossal fortune, estimated at between $15 and $25 billion. This political culture endures, all the more so as decentralization, begun at the end of the 20th century, has widened the network of corruption, making it necessary to "pay everyone", beyond the Suharto clan. Susilo Bambang Yudhoyono, president from 2004 to 2014, had promised during his first election campaign that the fight against corruption would be the first of his challenges: a few months after coming to power, he began to push through arrests and trials, such as that of a former governor of Aceh province, considered one of the most corrupt. A corruption eradication commission was also set up.
The last president, Joko Widodo, also made the fight against corruption his hobbyhorse. But it's an uphill battle, as corruption is commonplace and deeply rooted in the country's customs. It remains to be seen what the new president, Prabowo Subianto, who took office in October 2024, will put in place.
Political issues
Since Timor's independence in 2002, relations with Australia have deteriorated. The dispatch of Australian troops to the Timorese border, under the aegis of the United Nations, was seen as a provocation by Indonesia, suspicious of Australia's power. The Bali bombings also exacerbated tensions: on October 12, 2002, a bomb attack in Kuta claimed the lives of 202 people, mainly young Australians. In 2005, further attacks claimed Indonesian victims in Jimbaran. Although Australian tourists have returned to Bali in force, diplomatic relations became strained in 2015, after the execution of two Australians for drug trafficking. Currently, relations between these two neighboring countries are characterized by a façade of cordiality.
The biggest challenge for Bali: tourism, a financial windfall for decades
In 2001, before the devastating attack on Bali, the archipelago welcomed 5.15 million tourists, generating $5.4 billion in revenue. In August, Bali was receiving an average of one million visitors a month! However, the crisis had a heavy impact on the island, where 90% of the population depended on the tourist industry, from waiters to fishermen to artists. After the 2002 bombing, the streets of Kuta were empty and unemployment soared, causing local tensions. Since the 2005 bombings, Bali has diversified its economy, attracting service companies. In 2019, nearly 6 million foreign tourists and 10 million Indonesians visited the island, testifying to a sector that remains central.
A return to the north for some Balinese
The Covid-19 pandemic severely affected workers in Bali's tourism sector, leading to mass lay-offs, reduced wages and shorter working hours. Balinese from the rural north, who had come to work in tourism in the south, had to return to their villages to subsist, turning to agriculture and fishing, which paid much less. With 25% of transport and food revenues linked to tourism, the downturn in this sector has led to an exodus. However, this return of labor has benefited the northern region. In June 2021, the Indonesian President approved ten measures to support economic recovery, including training and soft loans.
Post-pandemic
Since 2021, Bali has been facing several major challenges. The recovery of tourism is crucial, but must be accompanied by more sustainable resource management. The development of infrastructures to host international events is booming, while at the same time trying to diversify the economy so as not to be solely dependent on tourism. Environmental protection, highlighted by the effects of the pandemic, is now a priority, with initiatives to reduce waste and promote more responsible tourism. The rise of the digital age and job creation in the technology sectors are also underway, particularly to attract remote workers and international companies. Improving local skills through training programs remains a key challenge to ensure a more resilient and independent future for the island.
