Indonesia to Initiate Universal Healthcare by 2014

CEIC Indonesia Data Talk: Indonesia seeks to initiate universal healthcare from January 2014 as the administration enhances medical coverage and extends its reach to poorer communities; as of 2013, Indonesia is home to an estimated 250.40 million people. The administration has sought to increase and improve on its medical infrastructures along with universal health insurance coverage by 2019. President Susilo Bambang Yudhoyono plans to fund this healthcare programme through contributions from the government, employers and employees. To that end, the evaluation of Indonesia's hospital capacity is important, especially in managing the demands of its population. As of 2012, the country was serviced by 2,083 hospitals (comprising 1,608 general hospitals and 475 specialised hospitals), which had increased from 1,721 hospitals (1,370 general hospitals; 349 specialised hospitals) during 2011. Of the current 2,083 hospitals, 1,540 of these are non-profit organisations (which includes 727 in the private sector) while 543 hospitals are for profit (including 75 that are state-owned enterprises). The expansion of Indonesia's medical facilities has been most evident in Java (which includes Jakarta, Banten, West Java, East Java, Central Java and Yogyakarta) with 59.67% of new hospitals established in those areas combined, in a region that accounts for 57.01% of Indonesias total population. More public health centres (Puskesmas) have also been established in a bid to extend a greater outreach to the poorer communities across Indonesia. As of 2012, there were 9,510 public health centres across Indonesia (comprising 3,152 treatment and 6,358 non-treatment centres), up from 9,320 public health centres during 2011 (comprising 3,019 treatment and 6,302 non-treatment centres). Indonesia has also seen vast improvements in key healthcare coverage ratios, especially with regards to the population-to-hospital bed ratio (lower ratios are generally indicative of a healthier and/or less-crowded healthcare system). The country reported a 1,068:1 population-to-hospital bed ratio during 2012 (or 1,213:1 population-to-general hospital beds), down from 1,430:1 and 1,493:1 during 2011 and 2010 respectively (or ratios of 1,628:1 and 1,734:1 concerning general hospital beds during the same period). On the other hand, the noticeable improvements in medical infrastructures is somewhat hampered by slower growth in the necessary human capital; the ratio of population-to-healthcare-employees was 436:1 during 2012 compared to 447:1 during the previous year. However, despite its noble goals and the general improvements to Indonesia's medical facilities, there are doubts on the administrations abilities to implement such a large-scale undertaking and to obtain stakeholders approval for the task. That said, while the extension of universal healthcare insurance is a daunting task, there are some bright spots. Indonesia has a largely young population with an estimated median age of 28.06 years as of 2013 compared to 25.65 years during 2003, while the share of the population aged between 15-64 years accounts for 67.05% of the overall population compared to 65.95% during 2003. While the unemployment rate remains above 5% (5.92% as of February 2013), it has largely been on a declining trend from a high of 11.24% in August 2005. However, low overall average wages raise doubts as to whether the administration may realistically fund the national insurance scheme through employee contributions. As of 2012, Indonesia's monthly average wages stood at approximately IDR1.44 million (approximately USD153.61) monthly, contrasting with Japans average monthly cash earnings of USD4,080 and South Korea's USD3,230; Japan and South Korea both offer universal healthcare. An improvement in overall healthcare coverage may either help or hinder the governments chances in the coming 2014 election, depending on the extent of implementation come 2014 and its overall effectiveness. The Ministry of Health has noted that improved coverage should come with a corresponding enhancement of the quality of healthcare services. By Meytha Wendharti Google+ Author Profile - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
11th October 2013 Indonesia to Initiate Universal Healthcare by 2014

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