Updated on 8 February 2017
The study by research firm Business Monitor International Ltd (BMI) states that Indonesia's objective of achieving universal healthcare by 2019 will be highly difficult.
Indonesia's pursuit of universal healthcare will remain difficult in 2017. First rolled out in January 2014, the authorities aimed to have fully enrolled the population into the national health insurance scheme Jaminan Kesehatan Nasional (JKN) by January 2019 while ensuring that 'high quality healthcare services' are equally accessible to the entire population. Reinforcing our long-held caution on the government's ambition for JKN], latest estimates suggest that only 66 per cent of the population were enrolled as of December 2016. This leaves the authorities two years to expand coverage to over 80mn people in the country - a challenging outcome given the experience of other emerging markets such as Vietnam and the Philippines as they move towards 100 per cent coverage.
Instead, we anticipate a more incremental expansion to the number of Indonesians under the JKN. This will continue to have a positive impact on the healthcare sector - dovetailing with rising household incomes, an integral driver of the overall market in value terms. The introduction of a coordination of benefit (COB) scheme, which allows more affluent Indonesian patients to supplement coverage under the JKN with private health insurance, lends further weight to the role of private health spending to drive growth. We are forecasting healthcare spending in Indonesia to rise from IDR366,323bn (USD27bn) in 2016 to IDR1.1trn (USD70bn) by 2026, with a compound annual growth rate of 11.5 per cent in local currency terms and 9.9 per cent in US dollar terms.
Incremental Expansion In Coverage To Facilitate Growth
Extending coverage to informal sector to be difficult