Indonesia has designated a 41ha area in the quiet coastal town of Sanur as a special economic zone for health tourism. - AFP
DENPASAR (Bloomberg): Bali will seek to attract world-class hospitals to the tropical island, adding medical treatment to its roster of offerings that already include white sand beaches and yoga retreats.
Indonesia designated a 41-hectare area in Sanur -- a quiet coastal town on the eastern coast -- as a special economic zone for health tourism, according to a Nov 1 regulation. That means companies setting up in the area could get fiscal and non-fiscal incentives.
Health companies including Mayo Clinic and Cleveland Clinic are looking to partner with the government to help Indonesia recoup some of the 97 trillion rupiah (US$6.2 billion) in national losses due to outbound medical tourism each year. Around two million Indonesians travel to countries such as Singapore, Malaysia, Japan and the US for treatment due to a lack of trust and limited capacity in the local health system.
"It is hoped these international health facilities will absorb 4%-8% of Indonesians who usually seek treatment abroad,” Elen Setiadi, acting general secretary at the SEZ National Council, said on Wednesday (Nov 2).
State-owned PT Hotel Indonesia Natour, which owns the designated area, will develop Sanur into a health tourism hub within three years. Companies including Hotel Indonesia and state-run hospital holding Pertamina Bina Medika will invest around 10.2 trillion rupiah to build health facilities, hotels, a convention centre and a botanical garden that reflects local medical practices.
By 2045, the country expects to gain up to $1.25 billion of foreign-currency earnings from medical tourism, said Setiadi.
