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Govt eyes Bali, Labuan Bajo to develop medical tourism industry
Each year, an estimated 1 million to 2 million Indonesians travel abroad for medical treatment, leading to losses of approximately Rp 163 trillion (US$10 billion) annually in capital outflows. The massive losses underscore the urgent need to develop high-quality medical tourism within Indonesia.
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Illustration of medical tourism (Shutterstock/Gecko Studio)
H
ealth Minister Budi Gunadi Sadikin is considering popular tourist destinations such as Bali and Labuan Bajo in East Nusa Tenggara as strategic locations to develop Indonesia’s medical tourism industry, amid efforts to reduce the number of citizens seeking medical treatment abroad.
Budi said that each year, an estimated 1 million to 2 million Indonesians travel abroad for medical treatment, primarily to Malaysia, Singapore, Thailand and the United States.
“Indonesia loses approximately Rp 163 trillion [US$10 billion] annually in capital outflow, equivalent to nearly one percent of the country’s gross domestic product [GDP] last year,” he said on Thursday as quoted by Kompas.
Budi said the massive capital outflow underscores the urgent need to develop high-quality medical tourism within Indonesia, particularly in popular destinations such as Bali and Labuan Bajo, to encourage citizens to seek treatment at domestic healthcare facilities.
“This way, people can spend their money not only on enjoying the beach, art or culture during their vacation, but also on accessing quality healthcare services. Such a strategy could also help attract international travelers to participate in Indonesia’s medical tourism,” he said.
The Health Ministry estimates that Indonesia’s medical tourism sector has the potential to contribute up to Rp 1.36 trillion to the national GDP annually, a figure expected to rise in line with increasing life expectancy and the country’s growing aging population.
According to Budi, this potential could boost Indonesia’s current GDP by approximately 6 percent.
