Health Financing in Indonesia

Health_Financing-1In 2004, the Indonesian government made a commitment to provide its entire population with health insurance coverage through a mandatory public health insurance scheme. It has moved boldly and has already provided coverage to an estimated 76.4 million poor and near poor, funded through the public budget.

Nevertheless, more than half the population still lack health insurance coverage, and the full fi scal impacts of the government's program for the poor have not been fully assessed or felt. In addition, signifi cant defi ciencies in the effi ciency and equity

of the current health system, unless addressed, will exacerbate cost pressures and could preclude the eff ective implementation of universal coverage (UC) and the desired result of improvements in population health outcomes and fi nancial protection.