News Life and Health11 Dec 2018

Indonesia:State health insurer gets shot in the arm

11 Dec 2018

The Indonesian government will inject more capital into cash-strapped state health insurer BPJS Kesehatan this month, a senior finance ministry official said last week, although questions remain on how to ensure the firm no longer operates at a loss, according to a Reuters report.

The world’s fourth most populous country introduced universal health coverage in 2014, but BPJS Kesehatan, which covers around 200m people, has consistently posted deficits, with claims paid out far exceeding premiums collected.

Some hospitals have complained of delayed payments from BPJS hurting both their cashflow and their relationship with pharmaceutical distributors.

Vice Finance Minister Mardiasmo told Reuters a total of IDR5.2trn ($357.27m) will be provided for BPJS in stages until 14 December.

The government has already injected IDR4.9trn of capital into BPJS in September to avoid defaults, but the firm requested more help two months later, saying it needed to repay a total of IDR7.2trn of debts.


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