Bali's Special Economic Zone (SEZ)
The Sanur Special Economic Zone (SEZ) in Bali Province will be the first medical tourism SEZ in Indonesia on 41 hectares of land with an investment value of Rp10.22 trillion. Backed by Ministerial Decree - Regulation of Clinics in SEZ - it will contain an international standard hospital operated by the Mayo Clinic, luxury accommodation, various specialist clinics along with the SMI Regenerative Healthcare Facility. It is designed to attract 4–8% of the Indonesian outbound medical tourism market (80,000-160,000) by 2030, in addition to in-bound medical tourists from other countries.
Back-ground
Indonesia is the largest country in Southeast Asia with a population over 270 million, making it the fourth most populous country in the world. The recent COVID-19 pandemic has had a profound impact on the Indonesian economy resulting in the World Bank changing Indonesia’s status from an upper-middle to lower-middle income country in July 2021. In 2022, Indonesia bounced back from the pandemic achieving strong economic growth of 5.31%. The country remains the largest economy in Southeast Asia, and the tenth largest in the world.
In terms of healthcare quality and performance, Indonesia falls behind other countries in the region. As a result, around 2 million Indonesians travel overseas every year to receive medical care, even though Indonesia has been improving its healthcare sector. One of the initiatives to strengthen the sector is the development of the Sanur SEZ located in Bali, with Bali intended to become a medical tourism destination and reduce outbound medical tourism.
The SEZ
The Sanur Special Economic Zone (SEZ) in Bali, Indonesia, is a strategically designed project prioritizing healthcare and tourism. Sanur is strategically located close to Denpasar and only 20-30 minutes from the airport using the tollway. It is in the first row to the beach in a touristy but not overcrowded part of Bali.
Its core features include a range of healthcare facilities to cater to international patients, various hotels to accommodate global visitors, and a convention centre to host international events. The SEZ will also highlight Balinese culture through an ethnomedicinal botanical garden and will stimulate the local economy with a commercial centre for micro, small, and medium enterprises (MSMEs). Spanning 41.26 hectares, with an investment of USD 682 million, the Sanur SEZ project is set to complete in 2025.
Bali International Hospital
The cornerstone of the SEZ is a 250-bed Bali International Hospital (BIH). The hospital is expected to be operated under the joint venture of Indonesia Healthcare Corporation (IHC) and Mayo Clinic. This hospital is set to provide a broad spectrum of services, positioning itself as a primary healthcare destination.
Centres of Excellence
The SEZ will have several Centres of Excellence (COEs), specialty clinics that focus on different disciplines. These COEs will provide expert and targeted healthcare to enhance patient outcomes. These COEs will attract global medical tourists, boosting the local economy, while fostering healthcare innovation through research. Additionally, they offer specialized training for healthcare professionals and ensure a comprehensive, holistic healthcare approach within the SEZ, solidifying Sanur's position as a leading healthcare destination.
SEZ Incent-ives
To attract foreign businesses and investors, the Indonesian Government has committed to a range of measures to facilitate ease of doing business in the SEZ.
Fiscal Incentives
Corporate Income Tax Holiday
Tax Holiday 100% for Primary Activities (to be finally defined), subject to the amount of the investment.
Value Added Tax
VAT is not collected on:
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Delivery of Tangible Taxable Goods
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Import of Tangible Taxable Goods
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Import of Consumer Goods to the SEZ
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Delivery of Taxable Services and Taxable Goods (BKP) in SEZ.
Local Tax
Reduction of Local Tax and/or Local Retribution by 50%–100%.
Customs & Excise
Exempt from Import Duty and no tax for the import of capital goods and consumption goods to the SEZ.
Exempt from excise for raw materials or auxiliary materials that are used to produced finished goods.
Non-Fiscal Incentives
Ease of doing business for permit and licensing
Foreign property ownership in tourism SEZ
Simple immigration
formalities
Integrated infrastructure support from government
Transferable foreign operational licensing
Special regulation for labor and employment
Ease of land titling procedures
Fast track environmental approvals
Other incentives and facilities that are expected to be announced in the coming weeks.
Our Aim
The JV aims to commission the facility no later than February 2024.
The Simplr Unit Trust will provide funding via Simplr International Pty Ltd for land lease costs, design and construction, which is scheduled to start in September 2023.
A feasibility study, schedule of accommodation, and preliminary design work was complete in April 2023 with funding from the Australian government.
Construction on other facilities in the SEZ is well progressed and on track for operation by the first quarter of 2024.
More
Info
Background figures for the Regenerative Medicine Market, and impact areas in Medical Tourism.
Simplr International has brought together leading Japanese Regenerative Health Care specialists, Indonesian health consulting experts, support from both Indonesian and Australian Governments, and a team of leading industry specialists.
Full transparency and a high level of integrity is how we operate, and seek the same in our investors.
As a leading regenerative medicine specialist facility, the aim of the clinic will be to provide state-of-the-art stem cell therapy for cancer treatment, with services supported by the world-class oncology center at Bali International Hospital, also to be located in the Special Economic Zone.