Bali Governor Wayan Koster says the planned Bali Cultural Center (Pusat Kebudayaan Bali, or PKB) in Klungkung is intended to become a new centre of economic growth and help distribute development more evenly across the island.
The initiative is part of the provincial government’s efforts to reduce the concentration of tourism and economic activity in South Bali while strengthening cultural tourism and other industries in Central and East Bali.
Bali Cultural Center Planned as a New Economic Growth Hub
Governor Wayan Koster has outlined plans for the Bali Cultural Center in Klungkung to serve as a new economic growth hub for the island.
According to a report by NusaBali, Koster described the project as a strategy to distribute economic and tourism activity more evenly, particularly toward Bali’s central and eastern regions.
The governor made the remarks on Friday, October 30, 2026, during the Bali Regional Legislative Council’s (DPRD) 56th plenary session.
He was responding to views expressed by council factions regarding the province’s draft regional budget for 2027.
Reducing Bali’s Economic Concentration in the South
One of the main objectives of the Bali Cultural Center is to encourage a more balanced distribution of economic opportunities across the island.
Much of Bali’s tourism and commercial activity has traditionally been concentrated in southern areas, while other regions have experienced different levels of economic development.
Koster expects the cultural centre to help direct more cultural tourism activity and associated economic benefits toward Klungkung and surrounding areas.
The project is intended to support cultural preservation while creating opportunities for regional economic development.
A Major Cultural Facility with a Green Economy Focus
Koster acknowledged that the Bali Cultural Center will require substantial funding because it is designed as a comprehensive facility for preserving, protecting, promoting and staging Balinese arts and culture.
The project is also expected to incorporate a green economy concept, requiring investment in supporting infrastructure.
“The Bali Cultural Center will also become a new centre of economic growth that carries a green economy in Central and East Bali. So a large budget is needed to prepare the supporting infrastructure.”
— Bali Governor Wayan Koster
The governor said the proposed investment should be viewed in the context of the project’s anticipated long-term cultural and economic benefits.
Bali Seeks to Reduce Its Dependence on Tourism
The Bali Cultural Center forms part of the provincial government’s broader efforts to diversify the island’s economy.
According to Koster, approximately 65 percent of Bali’s economy is linked to tourism, creating a need to strengthen other economic sectors.
The governor said developing additional industries could help Bali maintain economic resilience when tourism experiences disruptions.
Economic Sectors Identified for Development
- Integrated agriculture and agro-industry.
- Marine affairs and fisheries.
- Creative industries and cultural enterprises.
- Traditional Balinese crafts.
- Micro, small and medium enterprises (MSMEs).
- Cooperatives.
- Creative and digital economy activities.
These sectors are among the areas the provincial government intends to strengthen as part of a more diversified economic foundation.
Building a More Resilient Balinese Economy
Koster emphasised the importance of reducing Bali’s vulnerability to changes in tourism activity.
“The hope is that Bali’s economic foundation becomes stronger under various conditions. Say, when the tourism sector is disrupted, for whatever reason, Bali can still survive.”
— Bali Governor Wayan Koster
Rp500 Billion Capital Injection Proposed for 2027
The provincial government’s draft budget for 2027 includes a proposed Rp500 billion capital injection into PT Pusat Kebudayaan Bali (Perseroda).
The funding proposal forms part of the government’s plans to support development of the cultural centre and its associated infrastructure.
2027 Budget Proposal: Rp500 billion in additional capital for PT Pusat Kebudayaan Bali (Perseroda), intended to support the Bali Cultural Center project in Klungkung.
As the allocation is included in the draft budget, it remains a proposal rather than a confirmed expenditure under an approved final budget.
