Rp 20 Trillion Fund for Indonesian Health Agency Delayed by Regulation

Indonesia's Health Minister Budi Gunadi Sadikin announced that a crucial Rp 20 trillion ($1.2 billion) injection of funds for the national health insurance agency, BPJS Kesehatan, remains stalled due to regulatory hurdles.

Sadikin explained that the disbursement of these funds is contingent upon the enactment of a Government Regulation (PP) concerning Asset and Liability Management (ALMA). This regulation will provide the legal framework necessary for the government to channel the bailout funds to BPJS Kesehatan. The draft PP has been submitted to the Ministry of State Secretariat and is currently under review.

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That is a problem from the regulatory side, regarding how to disburse it.

"We hope it can be signed soon by the President so that the Ministry of Finance can disburse it as quickly as possible. We expect it to be completed in a month or two," Sadikin stated. He noted that the delay is primarily a "problem from the regulatory side, regarding how to disburse it."

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We hope it can be signed soon by the President so that the Ministry of Finance can disburse it as quickly as possible. We expect it to be completed in a month or two.

Previously, BPJS Kesehatan's President Director, Prihati Pujowaskito, highlighted the agency's financial deficit, evidenced by a claim ratio of 108%. The agency expends around Rp 16 trillion monthly on hospital claims, while its contribution revenue is only about Rp 14 trillion, resulting in a monthly shortfall of roughly Rp 2 trillion. This deficit is projected to escalate to approximately Rp 30 trillion by the end of 2026 if no additional funding is secured.

Pujowaskito emphasized that this deficit is not a new issue, having persisted since 2018-2019. He assured that the current leadership is not to blame and that BPJS Kesehatan's focus remains on ensuring sustainability through strengthened risk pooling, robust funding, quality and cost control, and improved participant services.

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The deficit is not caused by the leadership of the current board. Therefore, BPJS's main focus is to maintain sustainability through strengthening risk pooling, strong funding, quality and cost control, and improving service quality for participants.