Jokowi builds hospital to recoup US$7b in medical tourism

[JAKARTA] Indonesia is building a hospital that will be run in partnership with US-based Mayo Clinic as part of a bid to recoup US$7 billion in outbound medical tourism.

President Joko Widodo seeks to bring in wealthy Indonesians and foreign visitors to the Bali International Hospital, which will start operating in mid-2023, he said at the groundbreaking event on Monday. The facility is being built in the Sanur area known for its white sand beaches.

About 2 million Indonesians travel to countries such as Singapore, Malaysia, Japan and the US for medical treatment each year due to a lack of trust and limited capacity in the local health system.

That results in US$7 billion of annual losses for the country, said Jokowi, as the president's known. The hospital will be part of his broader bid to reduce imports of drugs, raw pharmaceutical material, as well as health equipment and services.

BLOOMBERG