President Jokowi Designates Two New SEZs to Bolster Education, Healthcare

In a bid to boost the country’s education and healthcare, President Joko “Jokowi” Widodo has approved two new Special Economic Zones (SEZs) in Banten and Batam.

For the record, the Banten International Education, Technology and Health SEZ was established through Government Regulation Number 38 of 2024, while the Batam International Health Tourism SEZ was established through Government Regulation Number 39 of 2024 on October 7, 2024.

These two SEZs are expected to significantly impact the national economy while providing direct benefits to the community, through increased employment and innovation as well as various other multiplier effects.

Banten International Education, Technology and Health SEZ located in Tangerang regency is engaged in international education and health services using digital technology.

The SEZ with an area of 59.68 ha is expected to absorb up to 13,446 workers with an investment realization target of Rp18.8 trillion when fully operational. This SEZ will become an international education center with the operation of Monash University, as one of the 37th best universities in the world in the field of research, digital economy, and technology development targeting 100 startups, health sector with integrated services, and creative industries.

The establishment of the Banten SEZ aims to accelerate job creation and boost economic growth in the regency. In addition to contributing to local economic development, the SEZ is also intended to support the acceleration and expansion of national economic development.

Meanwhile, the Batam SEZ aims to realize investment of up to Rp6.91 trillion, potentially absorbing a workforce of 105,406 people. This SEZ is strongly focused on completing the development of international-standard health services and improving medical-tourism, which is expected to be completed and in operation by 2026.

The Batam SEZ is projected to deliver international-standard healthcare services by partnering with Apollo Hospitals, the largest private healthcare provider in India. Apollo is renowned for its ability to provide international quality care at competitive costs. Specializing in a range of advanced healthcare services such as oncology, cardiology, neurology, and robotic-based surgical treatments, Apollo’s presence in Batam will open doors for the SEZ to provide world-class healthcare.

This effort will strengthen Batam’s position as a competitive regional health tourism destination as well as reduce foreign exchange expenditure through improved domestic medical services, meaning that Indonesians will no longer need to seek treatment abroad.

By establishing these SEZs, Indonesia will further strengthen its position as a highly competitive country in education, health, and medical tourism. The two SEZs will generate a wide range of positive impacts, whether in terms of economic and social aspects or that of human resource development.

“Each SEZ has a specific development focus and is expected to make a significant impact on the economy, create jobs, and attract investment,” Secretary General of the National SEZ Council, Rizal Edwin Manansang said.

The Secretary General added that this step reflects the Government’s efforts to improve the competitiveness of the national economy through the development of strategic sectors.

To date, there are 22 (twenty-two) SEZs in the country, consisting of: 12 (twelve) Industrial SEZs in Gresik, Kendal, Sei Mangkei, Arun Lhokseumawe, Galang Batang, Morotai, Palu, Sorong, MBTK, Bitung, Tanjung Sauh, and Setangga; 7 (seven) Tourism SEZs in Mandalika, Lido, Tanjung Lesung, Kura Kura Bali, Tanjung Kelayang, Likupang, and Sanur (Health-Tourism); 2 (two) Digital SEZs in Nongsa and Singhasari; and 1 (one) SEZ for other services (MRO SEZ) namely Batam Aero Technic (BAT). With the addition of 2 new SEZs, the total number of SEZs approved has reached 24. Meanwhile, 8 (eight) other SEZs are in the process of being approved.

Cumulatively, since the establishment of SEZs until June 2024, the 22 existing SEZs have successfully recorded investments of Rp205.2 trillion. Meanwhile, the absorption of labor in all SEZs amounted to 132,227 people, from a total of 368 active business players in the SEZs.  (Public Relations of the National Council for Special Economic Zones/DNS) (FI/LW)