Economy

Rice terraces near Ubud; until the late-twentieth century tourist boom, agriculture dominated Bali's economy

Three decades ago, the Balinese economy was largely agriculture-based in terms of both output and employment. Tourism is now the largest single industry; and as a result, Bali is one of Indonesia’s wealthiest regions. The economy, however, has suffered significantly as a result of the terrorist bombings of 2002 and 2005.

Although in terms of output, tourism is the economy’s largest industry, agriculture is still the island’s biggest employer[citation needed], most notably rice cultivation. Crops grown in smaller amounts include fruit, vegetables, Coffea arabica and other cash and subsistence crops.[citation needed] A significant number of Balinese are also fishermen. Bali is also famous for its artisans who produce batik and ikat cloth and clothing, wooden carvings, stone carvings and silverware.

The Arabica coffee production region is the highland region of Kintamani near Mount Batur. Generally, Balinese coffee is processed using the wet method. This results in a sweet, soft coffee with good consistency. Typical flavors include lemon and other citrus notes.[9] Many coffee farmers in Kintamani are members of a traditional farming system called Subak Abian, which is based on the Hindu philosophy of "Tri Hita Karana”. According to this philosophy, the three causes of happiness are good relations with God, other people and the environment. The Subak Abian system is ideally suited to the production of fair trade and organic coffee production. Arabica coffee from Kintamani is the first product in Indonesia to request a Geographical Indication. [10]

Although significant tourism exists in the north, centre and east of the island, the tourist industry is overwhelmingly focused in the south. The main tourist locations are the town of Kuta (with its beach), and its outer suburbs (which were once independent townships) of Legian and Seminyak, the on the east coast the town of Sanur(once the only tourist hub), then to the south of the airport is Jimbaran, in the center of the island Ubud, and the newer development of Nusa Dua. The Ngurah Rai International Airport is located near Jimbaran, on the isthmus joining the southernmost part of the island to the main part of the island. Another increasingly important source of income for Bali is what is called "Congress Tourism" from the frequent international conferences held on the island, especially after the terrorist bombings of 2002; ostensibly to resurrect Bali's damaged tourism industry as well as its tarnished image.

Bali's tourism economy has now recovered from the horrible terrorism incidents. Arrivals in 2008 saw a record number of foreign visitors, just under 2 million. The American government lifted its travel warnings during that same year, though as of 2009 the Australian government still rates it a 4 danger level (the same as several countries in central Africa) on a scale of 5.

An offshoot of the tourism business is the growing real estate industry in Bali. Bali real estate has been rapidly developing in the main tourist districts of Kuta, Legian, Seminyak and Oberoi. Most recently, high end 5 star developments are taking place on the Bukit peninsula on the south side of the island. Villas in the million dollar category are springing up along the cliff sides of south Bali, commanding panoramic ocean views. Foreign and domestic (many Jakarta individuals and companies are fairly active)investment into other areas of the island also continues to grow. Land prices, despite the worldwide economic crisis have remained stable.

In the last half of 2008, Indonesia's currency had dropped approximately 30% against the US dollar, providing many overseas visitors value for their currencies. Visitor arrivals for 2009 are forecast to drop 8% (which would be higher than 2007 levels).

Bali's tourism brand is Bali Shanti Shanti Shanti.[11] Where Shanti derived from Sanskrit "Shanti" (शान्‍ति) meaning peace.

[edit] Demographics

The Mother Temple of Besakih one of Bali's most significant Hindu temples.

The population of Bali is 3,151,000 (as of 2005).

[edit] Religion

Cremation procession

Unlike most of Muslim-majority Indonesia, about 93.18% of Bali's population adheres to Balinese Hinduism, formed as a combination of existing local beliefs and Hindu influences from mainland Southeast Asia and South Asia. Minority religions include Islam (4.79%), Christianity (1.38%), and Buddhism (0.64%). These figures do not include immigrants from other parts of Indonesia.

Balinese Hinduism is a heterogeneous amalgam in which gods and demigods are worshipped together with Buddhist heroes, the spirits of ancestors, indigenous agricultural deities and also with places considered sacred. Religion as it is practiced in Bali is a composite belief system that embraces not only theology, philosophy, and mythology, but ancestor worship, animism and magic. It pervades nearly every aspect of traditional life.

Balinese Hinduism has roots in Indian Hinduism and in Buddhism, and adopted the animistic traditions of the indigenous people, who inhabited the island around the first millennium BCE. This influence strengthened the belief that the gods and goddesses are present in all things. Every element of nature, therefore, possesses its own power, which reflects the power of the gods. A rock, tree, dagger, or woven cloth is a potential home for spirits whose energy can be directed for good or evil. Balinese Hinduism is deeply interwoven with art and ritual, and is less closely preoccupied with scripture, law, and belief than Islam in Indonesia. Ritualizing states of self-control are a notable feature of religious expression among the people, who for this reason have become famous for their graceful and decorous behavior.[12]

[edit] Language

Balinese and Indonesian are the most widely spoken languages in Bali, and most Indonesians, the vast majority of Balinese people are bilingual or trilingual. There are several indigenous Balinese languages, but most Balinese can also use the most widely spoken option: modern common Balinese. The usage of different Balinese languages was traditionally determined by the Balinese caste system and by clan membership, but this tradition is diminishing.

English is a common third language (and the primary foreign language) of many Balinese, owing to the requirements of the tourism industry.

[edit] Culture

Ogoh-ogoh monster in Ubud

Bali is renowned for its diverse and sophisticated art forms, such as painting, sculpture, woodcarving, handcrafts, and performing arts. Balinese percussion orchestra music, known as gamelan, is highly developed and varied. Balinese performing arts often portray stories from Hindu epics such as the Ramayana but with heavy Balinese influence. Famous Balinese dances include pendet, legong, baris, topeng, barong, gong keybar, and kecak (the monkey dance). Bali boasts one of the most diverse and innovative performing arts cultures in the world, with paid performances at thousands of temple festivals, private ceremonies, or public shows.[13]

The Hindu New Year, Nyepi, is celebrated in the spring by a day of silence. On this day everyone stays at home and tourists are encouraged to remain in their hotels. But the day before that large, colourful sculptures of ogoh-ogoh monsters are paraded and finally burned in the evening to drive away evil spirits. Other festivals throughout the year are specified by the Balinese pawukon calendrical system.

Celebrations are held for many occasions such as a tooth-filing (coming-of-age ritual), cremation or odalan (temple festival). One of the most important concepts that Balinese ceremonies have in common is that of désa kala patra, which refers to how ritual performances must be appropriate in both the specific and general social context.[14] Many of the ceremonial art forms such as wayang kulit and topeng are highly improvisatory, providing flexibility for the performer to adapt the performance to the current situation.[15] Many celebrations call for a loud, boisterous atmosphere with lots of activity and the resulting aesthetic, ramé, is distinctively Balinese. Oftentimes two or more gamelan ensembles will be performing well within earshot, and sometimes compete with each other in order to be heard. Likewise, the audience members talk amongst themselves, get up and walk around, or even cheer on the performance, which adds to the many layers of activity and the liveliness typical of ramé.[16]

Kaja and kelod are the Balinese equivalents of North and South, which refer to ones orientation between the island’s largest mountain Gunung Agung (kaja), and the sea (kelod). In addition to spatial orientation, kaja and kelod have the connotation of good and evil; gods and ancestors are believed to live on the mountain whereas demons live in the sea. Buildings such as temples and residential homes are spatially oriented by having the most sacred spaces closest to the mountain and the unclean places nearest to the sea.[17]

Most temples have an inner courtyard and an outer courtyard which are arranged with the inner courtyard furthest kaja. These spaces serve as performance venues since most Balinese rituals are accompanied by any combination of music, dance and drama. The performances that take place in the inner courtyard are classified as wali, the most sacred rituals which are offerings exclusively for the gods, while the outer courtyard is where bebali ceremonies are held, which are intended for gods and people. Lastly, performances meant solely for the entertainment of humans take place outside the walls of the temple and are called bali-balihan. This three-tiered system of classification was standardized in 1971 by a committee of Balinese officials and artists in order to better protect the sanctity of the oldest and most sacred Balinese rituals from being performed for a paying audience.[18]

Tourism, Bali’s chief industry, has provided the island with a foreign audience that is eager to pay for entertainment, thus creating new performance opportunities and more demand for performers. The impact of tourism is controversial since before it became integrated into the economy, the Balinese performing arts did not exist as a capitalist venture, and were not performed for entertainment outside of their respective ritual context. Since the 1930’s sacred rituals such as the barong dance have been performed both in their original contexts, as well as exclusively for paying tourists. This has led to new versions of many of these performances which have developed according to the preferences of foreign audiences; some villages have a barong mask specifically for non-ritual performances as well as an older mask which is only used for sacred performances.[19]

The Balinese eat with their right hand, as the left is impure, a common belief throughout Indonesia. The Balinese do not hand or receive things with their left hand and would not wave at anyone with their left hand.

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