Bali’s event industry is under threat due to the government’s budget efficiency measures, which have led to a reduction in events requiring Event Organiser (EO) services.
The Chairperson of the Regional Representative Council (Dewan Perwakilan Daerah or DPD) of the Indonesian Event Industry Council (Industri Event Indonesia or Ivendo) Bali, Grace Jeanie, explained that 85% of event industry players have experienced a drastic decline in income due to budget cuts enforced by the government which, as a result, has affected official government-related travels, meetings, and seminars.
A survey of 44 event industry players revealed that an estimated 750 events are expected to be affected in the first quarter of 2025. If this trend continues throughout the year, Bali’s event industry could face potential losses of up to Rp3.15 trillion. This figure includes lost revenue for EOs, production vendors, freelance workers, and supporting sectors such as hotels, transportation, and micro, small, and medium enterprises (MSMEs).
“The event industry is one of the backbones of Bali’s economy. If major events are cancelled or have their budgets reduced, it will not only affect the organisers but also thousands of workers in this sector,” Jeanie stated to the press on Thursday, the 20th of March.
In addition to financial losses, the budget cuts enforced by the government have also significantly impacted employment in the event industry. Due to the drastic reduction of events, approximately 2,500 permanent and non-permanent workers are projected to be at risk of losing their jobs or, at least, their usual income. Moreover, a majority of survey respondents expressed pessimism about the industry’s future, with 57% believing that it will become increasingly difficult for the sector to grow.
Ivendo Bali emphasised that budget efficiency measures should not come at the expense of industries that have played a key role in regional economic recovery. With the right strategic approach, Bali can remain a leading destination for events and uphold its reputation as Indonesia’s MICE hub.
“We hope the government will re-evaluate this [budget cuts] policy by involving all stakeholders to ensure that any solutions implemented support the long-term sustainability of both the event industry and Bali’s economy as a whole,” Jeanie concluded.