Speaking at the 2025 International Conference on Infrastructure in Jakarta on Thursday, he stated that people spend their money to maintain their health.
He noted that the average life expectancy in Indonesia is around 70 years, with individuals spending up to US$140 per year on health. This results in a total annual health expenditure of US$40 billion, a figure expected to rise every year, as the population ages.
Sadikin explained that if Indonesia were to follow a pattern similar to Malaysia, where each resident spends an average of US$400 on health annually, with an average life expectancy of 76 years and a population of 280 million—the potential could reach around US$84 billion.
"One percent of GDP is US$15 billion. Therefore, the US$84 billion is almost six percent of the GDP growth, just from the health services sector," he explained.
Hence, he highlighted the need to develop domestic health tourism to harness this potential, especially since Indonesians spend an estimated US$10 billion on health services abroad, in countries such as Malaysia, Singapore, and the United States.
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According to data from the Coordinating Ministry for Economic Affairs, Indonesia's GDP in 2024 reached Rp22,139 trillion (US$1,357 billion), up from Rp20,892 trillion (US$1,234 trillion) the previous year.
By advancing health tourism, Sadikin believes Indonesia's affluent and upper-middle-class citizens will be more inclined to spend on health services at various domestic tourist destinations such as Labuan Bajo, Bali, or Batam.
"They can use their money not only for vacations but also to access health services," he remarked.
Sadikin believes if Indonesians choose to seek healthcare in their home country, it will also attract foreigners to do the same.
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Translator: Mecca Yumna/Hreeloita Dharma, Resinta S
Editor: Rahmad Nasution
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