As a tourist area where most of its income comes from the tourism sector, Bali is the worst hit area as a result of Covid-19 pandemic. Mobilization restrictions eliminate tourists who come to Bali, both domestic and foreign. Bali’s economy declined drastically, and its government inevitably tried to adapt through leading sectors other than tourism. Economic strengthening is then carried out through a number of policies that prioritize local wisdom in managing regionally superior products in various sectors, especially in the local industrial sector and the creative economy. Endek’s traditional fabric industry is considered the ‘savior’ of Bali’s economy in the pandemic era. Those who lost their jobs in the tourism sector turned into craftsmen or marketers of Endek products. This research analyzes the efforts of Balinese Government in revitalizing the economy after Covid-19 pandemic. This research uses a qualitative approach with descriptive data obtained from statements, written words, and observed behavior. The data used consist of primary and secondary data obtained through research in the field. The result of the study shows that Bali’s economic recovery policy by highlighting Endek cloth is in line with the Bali Government’s vision. Through “Nanung Sat Kerthi Loka Bali” all policies should maintain the sanctity and harmony of Bali’s nature. The vision focuses on three main aspects, namely nature, manners, and culture, which implement the value of Tri Hita Karana (three causes of prosperity). It consists of six pillars of leading sectors targeting the industrial sector, SME sector, the creative and digital economy sector and also the tourism sector. The Balinese Government has also succeeded in creating an ecosystem that supports the Endek fabric industry. Bali is expected to be economically independent by utilizing its local potential. This is shown by the policy on the use of traditional cloth and the IKM Bali Bangkit Expo, which was held this year. The recommendation offered is the implementation of priority development programs carried out by the Balinese Government based on the concept of custom-based on local wisdom, tradition, and cultural arts. In addition, there is a need for further policy strengthening by involving the Bali Provincial Government, Dekranasda Bali, relevant ministries, the private sector, and Endek actors/craftsmen.
Keywords: Local wisdom, Endek, economy recovery, economy policy, sustainable communities