Community-Based Natural Resource Governance in Bali Adapts to Global Green Economy Pressures

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FORMOSA NEWS - Bali - Global green economy policies are reshaping how natural resources are governed in Bali. A 2026 study by I Gusti Ayu Lia Yasmita from Universitas Tabanan reveals how local communities are adjusting rules, economic activities, and institutional structures to remain resilient under international sustainability demands. The findings matter because Bali’s economy depends heavily on natural resources and sustainable tourism, making it a critical case study for community-based governance in the global sustainability transition.

Global Sustainability Pressures Are Transforming Local Systems

In recent years, the global shift toward a green economy has accelerated in response to climate change, biodiversity loss, and environmental degradation. International sustainability standards, eco-tourism requirements, and green market expectations now influence how local communities manage natural resources.

Regions like Bali face unique challenges. The local economy relies on the balance between environmental conservation, tourism, and cultural heritage. As sustainability expectations grow, communities must align economic survival with environmental protection and social values.

The study highlights how community-based governance systems are evolving to navigate these pressures.


How the Study Was Conducted

The research applied a qualitative single-case study approach to understand institutional change and community adaptation strategies.

Data collection included:

  • In-depth interviews with 10 key informants
  • Field observations
  • Document analysis of customary laws (awig-awig), village regulations, and green economy policies

The data were analyzed using institutional analysis and adaptive governance frameworks to identify patterns of rule changes, stakeholder interactions, and community resilience.

This approach allowed the researcher to capture social and institutional transformation in depth.

Key Findings: A Hybrid Governance Model Emerges

The study shows that global green economy pressures have encouraged the emergence of a hybrid governance model combining formal government regulations with traditional local norms.

1. Sustainability Standards Drive Institutional Change

Green tourism policies and sustainability standards are reshaping local regulations. Communities are strengthening environmental protection through:

  • Updated customary laws
  • Village policy adjustments
  • Integration of local and government regulations

2. Strong Community Adaptive Capacity

Local communities are not passive recipients of global policies. Instead, they actively adapt through:

  • Modifying customary rules to align with sustainability standards
  • Diversifying economic activities based on local resources
  • Building collaborative stakeholder networks

These actions show that communities can adapt while preserving cultural identity.

3. Economic Diversification Becomes a Survival Strategy

Communities are developing environmentally friendly economic activities, including:

  • Community-based tourism
  • Sustainable local products
  • Culture-based creative economy initiatives

Diversification reduces dependence on direct natural resource exploitation.

4. Multi-Stakeholder Collaboration Strengthens Governance

The study identifies increasing collaboration between:

  • Local government
  • Traditional community institutions
  • Businesses
  • Environmental organizations

This collaboration creates a stronger and more inclusive governance network.

5. Tensions Between Markets and Culture Persist

Despite progress, conflicts remain between global market demands and local cultural values. This tension reflects the broader challenges of transitioning toward an inclusive green economy.

The researcher explains that Bali’s communities demonstrate resilience by aligning traditional authority structures with modern environmental and economic demands.

Implications for Society and Policy

For Local Communities

Community-based governance can:

  • Protect environmental sustainability
  • Strengthen local economies
  • Preserve cultural values

The findings show that sustainability does not have to come at the expense of local identity.

For Policymakers

Green transition policies are more effective when they:

  • Recognize the role of customary institutions
  • Involve local communities in decision-making
  • Combine formal regulations with local wisdom

For Academia

The study contributes empirical evidence to adaptive governance theory, particularly in community-based natural resource management in developing regions.

Author Profile

I Gusti Ayu Lia Yasmita, S.E., M.M.
Lecturer at Universitas Tabanan.
Expertise: natural resource governance, environmental economics, and adaptive governance.

Research Source

Yasmita, I.G.A.L. (2026).
“The Dynamics of Community-Based Natural Resource Economic Governance in Responding to Global Green Economy Pressures.”
International Journal of Management and Business Intelligence (IJBMI), Vol. 4 No. 2, pp. 151–162.

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