A Cure For Indonesia's Ailing And Corrupt Health System

2025-06-11 06:10:33

(MENAFN- Asia Times) The Jaminan Kesehatan Nasional (JKN), Indonesia's single-payer health insurance, faces a looming deficit potentially amounting to 25 trillion rupiah (US$1.54 billion) as of 2025, the largest since BPJS Kesehatan (or BPJSK) began managing JKN in 2014.

This alarming deficit has sparked public turmoil, with stakeholders suggesting solutions ranging from increasing monthly premiums to reducing coverage for smoking-related diseases.

BPJS operates under mandates of UU 40/2004 and UU 24/2011, to administer JKN, Indonesia's universal health coverage program. JKN is financed through premiums: formal workers contribute 5% of their salaries, while informal workers pay according to one of three classes outlined in Perpres 64/2020.

The government subsidizes premiums for the impoverished through the Minister of Health. When JKN users receive healthcare, facilities provide care and submit proof to BPJS for reimbursement. Additionally, primary health centers (Puskesmas) and clinics receive a per-person payment for each registered user, known as capitation payment.

The models of Indonesia's national health insurance incorporate elements from two globally recognized health insurance models: the Beveridge model from England and the Bismarck model from Germany. The Beveridge model is seen in the National Health Service (NHS), which funds health insurance through government-owned services financed by tax.

Conversely, the Bismarck model involves tax contributions deducted from salaries as part of the employee-employer contribution, applicable in both public or private sectors. JKN combines these approaches by collecting premiums through salary contributions and offering services to both the public and private sectors.

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