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Gov't approves Batam international health tourism special economic zone

Jakarta Globe - May 30, 2024

Jakarta – Chief Economic Affairs Minister Airlangga Hartarto recently approved the proposal to establish the Batam International Health Tourism Special Economic Zone (SEZ).

Two other SEZs, namely Bumi Serpong Damai and Morowali, also were approved by the minister.

According to BP Batam deputy head Purwiyanto, the city development agency had been trying to set up this SEZ for the past few years. This appointment would bring in new investments to Batam.

"We believe the SEZ will receive huge investments, both in terms of regional perception and the impact of the presence of investment on the economy and workforce. This will be a multiplier effect for all lines of the economy in Batam," Purwiyanto was quoted as saying in a recent press statement.

The Batam International Health Tourism SEZ covering an area of ??47.17 hectares, will be in the Sekupang area spanning ??23.10 Ha (Integrated Health Tourism) and the Nongsa area of ??24.08 hectares (Tourism). The Batam International Health Tourism SEZ aims to attract Rp 6.91 trillion by 2032. The SEZ is expected to provide jobs for 105,406 people for 80 years.

This proposal is considered to meet the requirements because it has 100 percent control of the land with the main investors, namely Apollo Hospitals India and Mayapada Group.

In Sekupang, the main healthcare facility will be carried out by the establishment of an international hospital (Mayapada Apollo Batam International Hospital). There will also be an international nursing academy, a "MedTech park" equipped with MICE (Meetings, Incentives, Convention & Exhibition), doctors' housing, a dormitory, hotels, and Retail. RSBP Batam and its supporting facilities will also be part of the SEZ whose services will be integrated with Mayapada Apollo Batam International Hospital.

The main tourism activities in Nongsa will be supported by the retirement village and clinic. There will also be cottages, bungalows, and motels intended for tourists, patients and accompanying families. Batam is directly adjacent to Singapore and Malaysia, hence making it a strategic location.

As many as 2 million Indonesians choose to get medical treatment abroad every year. About 1.5 million of which pick Malaysia and Singapore. The Batam International Health Tourism SEZ seeks to absorb 2 percent of the said 2 million medical tourists or approximately 40,000 people.

Mayapada Healthcare's president commissioner Johanes Tahir commented on the SEZ appointment.

"There will soon be an international hospital in Batam that will be of interest to tourists with international standards," Johanes said.

PT Karunia Praja Pesona is tasked with realizing the commitment of the KEK development target for the first 5 years of Rp 3.3 trillion and creating job opportunities for 19,740 people.

The SEZ appointment is now waiting for a government regulation.

Source: https://jakartaglobe.id/special-updates/govt-approvesbatam-international-health-tourism-special-economic-zon