The development of a Special Economic Zone (SEZ) for Health Tourism in Batam is poised to become a significant source of Local Own Revenue (PAD) and job creation, according to the city’s Secretary-General (Sekda), Jefridin. The initiative, which is set to be developed in Sekupang and Nongsa, has been a topic of discussion by Batam Mayor Muhammad Rudi on several occasions.
Batam is embarking on an ambitious project to establish an International Health Tourism SEZ, with an investment of IDR 6.9 trillion. This strategic development is expected to retain foreign exchange earnings of IDR 1.762,64 trillion (SGD 151.57M) over 80 years, significantly impacting the city’s economy and employment landscape.
The Health Tourism SEZ in Batam aims to draw investments worth IDR 6.9 trillion (SGD 593M), offering a substantial boost to the local economy and creating approximately 99,000 job opportunities.
The project is designed to generate IDR 48.2 trillion (SGD 4.14B) in Batam’s Gross Regional Domestic Product (GRDP) over 80 years. Sectors such as construction, accommodation and food services, real estate, education services, healthcare services, and social activities are expected to benefit the most.
The initiative addresses the current outflow of Indonesian medical tourists, with 1.5 million out of 2 million opting for medical services in Malaysia and Singapore. Batam’s strategic location offers a viable alternative to capture this market.
The Health Tourism SEZ is expected to enhance Batam’s attractiveness as a medical tourism destination, potentially diverting patients who previously sought medical services abroad to Batam instead.
Read More: BP Batam Prioritizes Power Supply for Special Economic Zones and Rempang Eco-City Development
The local government’s commitment to the project, including the provision of necessary regulations and support, highlights the potential for this SEZ to significantly contribute to Batam’s PAD and overall economic growth.
The establishment of an International Health Tourism SEZ in Batam represents a significant step towards diversifying the city’s economy and enhancing its appeal as a destination for medical tourism. For Singaporeans and international visitors, this development not only offers a new option for healthcare services but also underscores Batam’s position as a burgeoning investment and tourist destination in the region.
The development of a Health Tourism Special Economic Zone in Batam, with a projected investment of IDR 6.9 trillion (SGD 593M), is set to revolutionize the local economy by increasing local revenue, creating job opportunities, and attracting medical tourists from Indonesia and beyond. This initiative aligns with Batam’s strategic goals to enhance its economic and tourism sectors while providing substantial long-term benefits to the local community and investors alike.
Source: Go Kepri (2024)
