In 2021, the Indonesian government, alongside foreign investments in the medical sector, maximized the development of the health industry to promote the expansion of health insurance.
The Health Law issued in 2023 replaced mandatory health expenditures with a performance-based budgeting system guided by market demand. This law also introduced six main pillars for health insurance transformation, demonstrating the Indonesian government’s commitment to improving the healthcare system and services.
Investments in Indonesia’s health sector will be guided by the “Six Pillars of Healthcare Transformation” from the Ministry of Health:
- Primary Service Transformation: Focus on enhancing health screening and primary service capabilities, emphasizing preventive healthcare.
- Referral Service Transformation: Focus on improving the quality and distribution of healthcare services across Indonesia.
- Health System Resilience Transformation: Focus on increasing the availability of medicines, medical devices, and emergency response capacity to address health crises.
- Health Financing System Transformation: Focus on ensuring equitable access to healthcare services.
- Health Human Resources Transformation: Focus on the equitable distribution of healthcare workers throughout Indonesia.
- Health Technology Transformation: Focus on the utilization of technology and biotechnology.
At the beginning of 2024, the Asian Development Bank approved an investment loan of $650 million, supported by the Asian Infrastructure Investment Bank, the Islamic Development Bank, and the World Bank, for the development of public health laboratories and primary care facilities in Indonesia. This is the Asian Development Bank’s third investment in Indonesia, totaling approximately $4 billion.
In May 2024, Indonesian President Joko Widodo announced the launch of a hospital-based specialist doctor education program. This program aims to address the shortage of specialist doctors and the distribution issues of doctors in Indonesia. Additionally, the Indonesian Ministry of Health revealed that to accelerate the improvement of healthcare services, the addition of medical personnel, hospitals, and medical equipment is crucial.
If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.
Author:
Dewi Susanti