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Home GovAct

Establishing two special economic zones, Jokowi aims to strengthen the education and health sectors

Haris Sunandar by Haris Sunandar
October 11, 2024
in GovAct, News
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Illustration of the two special economic zones. Credit: BPMI Setpres

Illustration of the two special economic zones. Credit: BPMI Setpres

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Heaptalk, Jakarta — President Joko Widodo (Jokowi) has established two new special economic zones (SEZ): the Banten International Education, Technology, and Health SEZ through Government Regulation No. 38 of 2024, and the Batam International Health Tourism SEZ through Government Regulation No. 39 of 2024 on October 7, 2024.

These two SEZs are expected to significantly impact the national economy while benefiting the public by creating jobs, fostering innovation, and generating other multiplier effects.

The Banten International Education, Technology, and Health SEZ in Tangerang Regency focuses on international education and healthcare services, focusing on digital technology development. This zone, which covers an area of 59.68 hectares, is located in Tangerang Regency. With an investment target of Rp18.8 trillion when fully operational, the SEZ is expected to create up to 13,446 jobs.

This SEZ is projected to become an international education hub, with Monash University—ranked 37th globally—set to operate in the zone. It will also focus on research, digital economy, and technology development to support 100 startups, integrated healthcare services, and the creative industries.

The establishment of the Banten International Education, Technology, and Health SEZ aims to accelerate job creation and boost economic growth in Tangerang Regency, Banten Province. In addition to contributing to local economic development, this SEZ is designed to support the acceleration and expansion of national economic growth.

Meanwhile, the Batam International Health Tourism SEZ targets an investment realization of up to Rp6.91 trillion, potentially creating 105,406 jobs. This SEZ is committed to developing international-standard healthcare services and enhancing medical tourism. It is expected to be completed and operational by 2026.

The Batam International Health Tourism SEZ is expected to offer international standard healthcare services in collaboration with Apollo Hospitals, India’s largest private healthcare provider. Apollo is known for its ability to provide high-quality international care at competitive costs.

With specialties in advanced medical services such as oncology, cardiology, neurology, and robotic surgery, Apollo’s presence in Batam will provide opportunities for the SEZ to offer world-class care. This will strengthen Batam’s position as a competitive regional health tourism destination while reducing foreign exchange outflows by improving domestic medical services, ensuring Indonesians no longer need treatment abroad.

With the establishment of the Banten International Education, Technology, and Health SEZ and the Batam International Health Tourism SEZ, Indonesia is further solidifying its position as a highly competitive country in the education, health, and medical tourism sectors. These SEZs are expected to have a broad positive impact on the economy, social development, and human resource development.

According to Rizal Edwin Manansang, Secretary-General of the National Council of Special Economic Zones, this initiative reflects the government’s efforts to enhance national economic competitiveness by developing strategic sectors. “Each SEZ has a specific development focus and is expected to significantly contribute to the economy, create jobs, and attract investment,” Edwin concluded.

Tags: Banten International Education Technology and Health SEZbanten special economic zoneBatam International Health Tourism SEZbatam special economic zonespecial economic zone

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