BNN Bloomberg are reporting on a story that Bali is looking 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 (SEZ) for health tourism, according to a November 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 IDR 97-trillion (approx. USD 6.2-billion) in national losses due to outbound medical tourism each year.
Around 2-million Indonesians travel to countries such as Singapore, Malaysia, Japan and the U.S. 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 to 8-percent of Indonesians who usually seek treatment abroad,” Elen Setiadi, Acting General Secretary at the SEZ National Council, said on Wednesday.
State-owned PT Hotel Indonesia Natour, which owns the designated area, will develop Sanur into a health tourism hub within 3-years. Companies including Hotel Indonesia and state-run hospital holding Pertamina Bina Medika will invest around IDR 10.2-trillion to build health facilities, hotels, a convention center and a botanical garden that reflects local medical practices.
By 2045, the country expects to gain up to USD 1.25-billion of foreign-currency earnings from medical tourism, said Setiadi.