Jakarta – Health Minister Budi Gunadi Sadikin announced on Tuesday that the government plans to raise premiums for Indonesia’s state health insurance program, BPJS Kesehatan, in response to rising inflation within the healthcare sector.
Speaking before the House of Representatives’ Commission IX, which oversees healthcare, labor, and social security, Budi highlighted that the last premium adjustment was made five years ago, while healthcare costs have surged by an estimated 15 percent annually during that period.
“Healthcare costs have increased by 15 percent each year, and the current BPJS funds are no longer sufficient to cover these expenses,” Budi said.
The minister assured the public that the premium increase would not affect low-income families, as the government will continue to subsidize their contributions. This will ensure that they can access health benefits at no additional cost.
“The government will fully cover the costs, including the premium increase, as it is our constitutional responsibility,” Budi emphasized.
While acknowledging that the move may not be well-received, Budi stressed its necessity to prevent more severe financial consequences for BPJS Kesehatan. He explained that with healthcare inflation ranging from 10 to 15 percent annually and no premium increase in five years, the government had no choice but to implement the hike.
Although the exact amount of the proposed increase was not disclosed, the minister’s comments underscored the urgent need to address the financial strain on the system.
During the same hearing, BPJS Kesehatan Chairman Abdul Kadir revealed that the agency faced a deficit of Rp 9.56 trillion (approximately $583.5 million) due to a mismatch between premium income and claim payments. Last year, BPJS Kesehatan’s premium income totaled Rp 165.34 trillion ($10.09 billion), while claim payments amounted to Rp 174.9 trillion ($10.68 billion).
BPJS Kesehatan, one of the largest state-run health insurance programs in the world, covers 278 million people, nearly 98 percent of Indonesia’s population. However, a significant number of members are inactive and fail to pay their premiums. Abdul Kadir reported that 55.4 million members have outstanding premium payments.
“The large number of inactive members affects our premium income and contributes to the current deficit,” Abdul explained.
The proposed premium increase aims to ensure the long-term sustainability of BPJS Kesehatan and preserve the quality of healthcare services for all of its members.
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