Rising Cost Of Living Impacting Local Communities & Digital Nomads In Bali

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Over the last ten years, a lot has changed in Bali.

The rise of the digital nomad and the huge influx of international investment in the province has massively changed the way in which local communities, expat communities and tourists experience the island.

Though prices always rise over time, the staggering increase in the cost of living in Bali is impacting local communities, digital nomads, and expats. 

Speaking to reporters, a Bali digital nomad from Russia explained how the economic landscape has changed for her and her partner. Daria Ivanova, from Moscow, runs a social media consultancy company and has been renting an apartment close to one of Bali’s most popular beach resorts for two and a half years.

Ivanova told reporters “The digital nomad community and remote workers are growing here. So being here is very good to build networks and find new ideas.” She added “Every afternoon, I can take a walk on the beach, and every weekend, I can travel and explore other parts of the island of Bali.”

Noting “I have worked in seven different countries, but none of them can approach Bali.” However, with the impact of the Covid-19 pandemic triggering a mass movement towards remote working and in turn, a new wave of digital nomadism, when Indonesia’s borders reopened after lockdown, a fresh influx of digital nomads arrived on the island, triggering a surge of property development and inflation.

In Denpasar City, property rental prices increased by more than 15% in the last year. This is nothing compared to the massive jump in prices seen in popular neighborhoods for digital nomads and expats, like Uluwatu, Canggu, and Ubud.

With demand skyrocketing, landlords, both local and international, have free reign to increase their prices as they see fit, and there is no shortage of people willing to pay above and beyond to secure their beachfront villa or jungle bungalow. 

Ivanoa told reporters, “When I first came to Bali, everything was cheap. Now, my expenses are the same as in Moscow.” It is no secret that the rising property prices in top tourism resort areas are also impacting the rental market around the province, making it increasingly difficult for Balinese residents to afford to live on their own island. With the average monthly wage for a Balinese worker sitting at IDR 2.4 million, often less, the rising rent prices across the province are making it harder for young people to build the secure future they desire. 

Speaking to reporters, Hansen Tandiyanto, the owner of co-working and co-living space Biliq, shared his observations on how Bali has changed between the first and second wave of digital nomad arrivals. Tandiyanto shared, “For these digital nomads, it is cheaper to get the lifestyle they want in Bali than where they come from.”

Adding “Another reason, Bali already has a strong expat community. It is easy for them to find people from the same country, speak the same language and share the same culture. So for them, Bali is like a home far from home.”

The increase in cost-of-living impacts local Balinese communities, especially those working in the tourism sector. For many hospitality workers, the low wages coupled with long commute times are seriously impacting their quality of life.

Ni Wayan Laksmi, a hotel employee, shared with reporters “We have to rent a house in the suburbs or even in other cities because we can no longer afford to live in Denpasar. How can we compete with foreigners who pay with dollars?”

The Head of the Bali Tourism Office, Tjok Bagus Pemayun, confirmed to reporters that he and his teams feel more needs to be done to help curb the negative impacts of digital nomads on the island while ensuring that the province remains open and welcoming to foreigners who wish to contribute positively to the island’s growth. 

He shared “Bali needs tourists who stay long-term and spend their money. That is the reason why our economy survived during the COVID-19 pandemic.”

Adding ”The government also feels that working remotely has become a common thing. Working while on vacation is no longer the privilege of a few people in a certain sector. We have to take advantage of this trend.”

“That is why we are trying to build less developed areas so that there is no excessive concentration of tourists in one part of Bali.”