Indonesian People's Money Flows Rp97.5 Trillion to Singapore and Malaysia for Medical Treatment

Dream - The Minister of State-Owned Enterprises reported that Indonesia lost Rp97.5 trillion in revenue because many people chose to seek medical treatment in neighboring countries, Singapore and Malaysia. This condition prompted the government to immediately provide a Health Special Economic Zone (KEK).

"Two million Indonesian citizens seek medical tourism in Singapore and Malaysia," said Erick while accompanying Megawati Soekarnoputri, quoted from Merdeka.com, Monday, January 16, 2023.

With the presence of world-class treatment alternatives within the country, Erick is optimistic that the development of the first Health and Tourism Special Economic Zone (KEK) in Indonesia, located in Sanur, Bali, will boost both national and local economy. 

The development of KEK Sanur is scheduled to be completed in 2024 and can employ around 43,000 workers.

Erick hopes that the presence of KEK Sanur can increase the total foreign exchange earnings to US$1.28 billion, or around Rp19.6 trillion in 2024. Meanwhile, the total investment to build KEK Sanur is estimated to reach Rp10.2 trillion.

On an area of ​​41.26 hectares, health facilities such as hospitals and international-level clinics will be established in collaboration with the largest hospital in the United States, Mayo Clinic, the revitalization of Bali Beach Hotel or Grand Inna Bali Beach (GIBB), a convention center, an ethnomedicinal botanic garden, and a commercial center to accommodate micro, small, and medium enterprises.

The development of KEK Sanur is also projected to absorb around 4-8 percent of Indonesian people who seek medical treatment abroad.

With these various developments, the number of patients seeking medical treatment in KEK Sanur is expected to reach 123,000 to 240,000 people by 2030. In the longer term, the savings from Health Special Economic Zones in 2045 are expected to save foreign exchange up to Rp86 trillion.

"In addition, the development of KEK Sanur will restructure the economic structure so that Bali's tourism is no longer mass tourism as it is now, but shifts to quality tourism, which can increase the length of stay and tourist spending in Bali. This has a broad economic impact on the local community," said Erick Thohir.