Indonesia's Healthcare & Social Security Agency Remains under Heavy Financial Pressure
The Indonesian government launched its universal healthcare program (Jaminan Kesehatan Nasional, or JKN) on 1 January 2014. This government-subsidized program aims to cover all Indonesian citizens - providing them with access to a wide range of health services – by the year 2019.
Currently it is mandatory for all companies in Indonesia to register their workers for the JKN program. Also foreign workers who live in Indonesia for at least six months have to participate in this healthcare program. Employers withhold an amount from workers’ monthly wages and send it to BPJS Kesehatan each month (its full name is Badan Penyelenggara Jaminan Sosial Kesehatan), the state-owned social security agency that is responsible for running the JKN program.
Not only companies (and all people active within the company) are obligated to participate in the JKN program, but also all Indonesian citizens – whether they work in the informal sector or they do not work at all - are required to sign up for the program (and sign up their children if they have any). Starting from 2019 the Indonesian government will impose (soft) sanctions on those people who fail to comply with this mandatory participation. For example, starting from 2019, those who do not participate in the JKN program will not be able to receive specific public services such as requesting new identity papers at the local administration or arranging a driver’s license.
Within the JKN program there are three classes. Class 1 offers the highest quality healthcare services and costs IDR 80,000 (USD $5.33) per month, followed by Class 2 (IDR 51,000 or approx. USD $3.40) and Class 3 (IDR 25,500 or approx. USD $1.70).
Although the monthly fee is not that expensive, the millions and millions of (near) poor will have great difficulty to afford their participation in the program. Therefore, their contribution is borne by the regional government.
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Read the full article in the September 2018 edition of our monthly research report. You can purchase this report by sending an email to info@indonesia-investments.com or a WhatsApp message to the following number: +6287884106944
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