Will Indonesia’s Bali be able to rival Singapore, Malaysia, Thailand in medical tourism?

President Jokowi hopes the Bali International Hospital will be able to reverse US$7 billion from being spent annually by Indonesians seeking medical treatment in neighbouring countries

But for this to work, observers say Indonesia’s medical sector also needs to boost local pharmaceutical production and revamp laws to attract top talent

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The Mount Elizabeth Novena Hospital in Singapore, a country that’s one of the top medical tourism destinations in Asia. Photo: Handout

Published: 8:00am, 3 Jan 2022Updated: 9:42am, 3 Jan 2022

Indonesia’s largest tourist destination Bali has long been known for its scenic coasts, lush rice paddies and surf spots, but it will soon have another draw: medical check-ups and cancer treatments.

President Joko Widodo last week led a ceremony to kick-start the construction of the Bali International Hospital in Sanur, the country’s first health-focused special economic zone.

The government hopes the new state-run facility, which will be built in partnership with the US-based Mayo Clinic, will help Indonesia recoup 97 trillion rupiah (US$7 billion) in annual losses from wealthy Indonesians travelling to receive medical treatment in neighbouring countries such as Malaysia and Singapore due to a poor perception of local hospitals and doctors.

Indonesian President Joko Widodo at a ceremony to launch the construction of the Bali International Hospital. Photo: Twitter

In 2015, at least 600,000 Indonesians were estimated to have paid for medical services abroad, spending between US$3,000 and US$10,000 per person, according to PwC.

“Every year, 2 million Indonesians seek medical treatment overseas, be it to Singapore, Malaysia, Japan, the United States, or other countries,” Widodo said. “I really hope after the Bali International Hospital is built, people will no longer seek treatments overseas and Bali will become a medical tourism destination.”

The hospital is expected to be completed in 2023 and have 300 wards and 30 intensive care beds. It may not be the only facility in the 41.5 hectare special economic zone, with Jakarta also planning to build hotels, a beach garden, convention centre, retail shops, an ethnomedicinal botanical garden and other health care facilities.

Minister of tourism and creative economy Sandiaga Uno has said Indonesia also aims to create medical tourism destinations in the city of Medan in North Sumatra, and in the capital city Jakarta, while maritime and investment affairs minister Luhut Pandjaitan said in November last year that there might be a “Johns Hopkins-affiliated hospital” or “three or four hospitals that might be built in Bali, Jakarta and Medan” down the road.