Bali News / Bali Travel and Holiday Updates

The shadow of financial crisis which is predicted to remain for quite a long period has started to affect Bali. Exporters are in arising concern for increasing number of postponed and even canceled export shipments. Secretary of the association of Indonesian handicraft exporters (ASEPHI) Bali Gde Weda Arjawa, S.E. on Monday (November 24th) said that US financial crisis has started to threaten business in Bali.

He even predicted that if prediction made by US President George Bush that the crisis will remain for long, Bali will become the worst affected. “At he moment handicraft export has decreased at about 20%. Many buyers postponed shipments or cancel orders,” said Arjawa.

Whilst the crisis has so far not affected labor yet, which means no lay offs took place yet, Arjawa assured that if the crisis remains for more than one year, majority of exporters will get collapsed unless a breakthrough found out. US financial crisis will surely affect large countries which also are the main market of Bali handicraft products.

Furthermore Arjawa said that the impact will also affect the producers, traditional handicraft makers spreaded in Balinese villages. When it comes, the worst affected party will be villager work force. “The crisis will not only break economical chain but will also destroy other sectors like education,” said Arjawa.

Therefore in addition to expecting that the crisis to not taking long period, entrepreneurs are also expected to search for break through in marketing, product diversification, and other efficiencies. “In addition to intensification of domestic market, utilization of domestic materials has to be increased to minimize dependency on import material,” insisted Arjawa.

Arjawa said that Bali handicraft actually have enormous export potential. Before the crisis, handicraft export from Bali has been increasing at an amazing pace of 20% annually. Products of Bali handicraft attract international market for its authentic and unique design.