Indonesia has officially launched its first medical-tourism Special Economic Zone (SEZ) in Sanur and designated Kura Kura Bali (Serangan Island) as a 498-ha SEZ. The Bali International Hospital (BIH) is open (Apr 2025) and the President inaugurated the Sanur SEZ & BIH in June 2025—turning Sanur into a year-round health/wellness hub. Kura Kura targets Rp 104.4 trillion (~US $6.9 bn) of investments, tens of thousands of jobs, and meaningful FX earnings as phases come online. For investors, these anchors translate into longer stays, higher willingness-to-pay, and steadier calendars—especially for licensed, professionally operated villas in prime coastal submarkets.

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1) What’s operational now (and why it matters)

• Sanur Health SEZ is live. Indonesia formalized the Sanur SEZ via Gov. Regulation No. 41/2022; in June 2025 the President inaugurated the SEZ along with BIH, confirming the zone’s official opening.
  
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• Bali International Hospital (BIH) opened April 2025. The hospital sits inside the SEZ and is positioned as an international-standard anchor for medical & wellness travel (cardiology, oncology, orthopedics, etc.).
  
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Investor lens: Health-driven trips are purpose-led; they extend length-of-stay and skew higher-spend. That supports ADR and smooths shoulder seasons—two levers that compound RevPAR and, after a clean fee stack, net yield.

2) Kura Kura Bali SEZ: scale, sectors, and runway

• Legal status & scale. Kura Kura was established as an SEZ via Gov. Regulation No. 23/2023; the site spans ~498 hectares on Serangan Island (Denpasar).
  
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• Investment & impact. The National SEZ Council’s press release targets Rp 104.4 trillion in investment with ~35,036 direct and ~64,817 indirect jobs; officials also cite potential foreign-exchange earnings up to ~US $31.8 bn at full operation.
  
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• What’s planned. A marina & waterfront tourism, hotels/resorts, wellness, creative-tech & education facilities, and retail/cultural components—i.e., mixed-use demand across tourism and the creative economy.
  
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Investor lens: A modern marina + creative/education + wellness stack broadens Bali’s visitor mix beyond leisure, supporting premium nightly rates and repeatable guest segments (events, conferences, study stays, retreats).

3) Why SEZs lift hospitality cashflows (simple mechanics)

• Purpose-driven travel (treatment, rehab, education, events) → longer itineraries → higher LOS.
  
  

• Professional care access nearby lowers booking friction → fewer cancellations and more direct bookings.
  
  

• Mixed-use anchors (marina/creative) diversify seasonality → steadier mid-week base occupancy.
  

Result: higher ADR, steadier Occ, and better RevPAR. With a disciplined operator and full fee disclosure, that rolls into healthier net yield.

4) Underwriting guidance (how we model SEZ upside)

We never “bake in” hype. Our baseline is conservative:

1. Set base inputs by asset & micro-location (operator comps for villa ADR/Occ; hotel KPIs for market context).
   
   

2. Treat SEZ halo as optionality. We add a LOS + ADR uplift scenario only after base case stress passes ±10% on ADR/Occ.
   
   

3. Walkthrough fee stack (management %, OTA blend, utilities, maintenance, insurance, levies, FF&E/capex reserves 3–5%).
   
   

4. Proximity premium: assets with easy drive times to Sanur or Serangan get a modest uplift range; far-flung assets do not.

5) Policy & governance: credibility check

• Sanur SEZ (Gov. Regulation No. 41/2022) and Kura Kura SEZ (Gov. Regulation No. 23/2023) provide the legal framework and incentives for anchored investment—clearer governance than ad-hoc projects.
  
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• National communications consistently position Sanur as Indonesia’s first health-focused SEZ—a structural signal that policy supports quality tourism and higher-value visitation.
  
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6) Risks (and why they’re manageable)

• Phasing & timelines. Large zones roll out in stages; we underwrite what’s operational and haircut future phases.
  
  

• Policy enforcement. Bali’s pivot to quality over quantity is positive for ADR, but requires licensed operations and compliance.
  
  

• Community & environmental due diligence. Serangan is culturally sensitive; we prefer assets/operators that align with local regulations and impact standards (this protects license, reputation, and pricing).
  

(Where relevant, we link to Gov. Regulations and SEZ Council communications in our memos, so numbers are verifiable.)

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7) Investor takeaways

1. Sanur is live—hospital open, SEZ inaugurated by the President—so the wellness/medical flywheel is not theoretical.
   
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2. Kura Kura is large-scale and legally anchored, with ~US $6.9 bn investment targeted and multi-sector demand planned (marina, creative-tech, education).
   
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3. These anchors extend length-of-stay and raise willingness-to-pay, lifting ADR and stabilizing occupancy—especially in prime coastal micro-locations with licensed, professional operations.
   
   

4. We model SEZ halo as upside, not dependency—base cases must stand on their own.

FAQ

Is BIH actually open?
Yes. BIH opened in April 2025; it sits inside the Sanur Health SEZ.

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Are these zones officially designated?
Yes. Sanur via Gov. Reg. No. 41/2022; Kura Kura via Gov. Reg. No. 23/2023 (area ~498 ha).

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Where do the Rp 104.4 trn / jobs / FX figures come from?
From the National SEZ Council (Kemenko Perekonomian) press releases and official communications.

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Sources & further reading (official / reputable)

• Cabinet Secretariat of the Republic of Indonesia — Presidential remarks inaugurating Sanur SEZ & BIH (June 25, 2025).
  
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• BIH (Bali International Hospital) — hospital opened April 2025; role within Sanur Health SEZ.
  
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• Travel Weekly Asia — coverage of BIH opening and medical-tourism positioning.
  
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• National SEZ Council (kek.go.id) — Sanur SEZ background & Kura Kura investment targets/jobs/FX.
  
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• Cabinet Secretariat / Legal repositories — Gov. Regulation No. 23/2023 (Kura Kura) and background notes on area & scope.
  
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• ANTARA News — Kura Kura development scope, investment and job projections.
  
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Methodology & disclaimer

Statistics and regulatory references are taken from official Indonesian government communications and recognized industry media. Investment/job/FX figures for Kura Kura reflect targets from the National SEZ Council and may change with phasing. SEZ effects are modeled as optionality; island averages ≠ project outcomes. We underwrite asset-by-asset with conservative ADR/Occ inputs and ±10% sensitivities.