In January 2014, Indonesia launched its universal health care program which, by the time it is fully implemented in 2019, will be the world’s largest health insurance system, providing 250 million citizens with health care cover.
In 2015, the Indonesian government was forced to increase the monthly premiums for health insurance in order to consolidate the system. Enrollment in the system will be mandatory as of January 2019. However, already the system is struggling with its own success as more and more Indonesians sign up for cover, the deficit is mounting quickly. The program offers broad medical coverage for low monthly premiums, ranging from $1.70 to $4.10 USD. As tens of millions of Indonesians had to go without health insurance before, naturally, the program attracts new enrollees with serious, long unaddressed illnesses. According to the health ministry, the shortfall amounted to IDR3.3 trillion (US$ 240 million) last year and could deepen to IDR13.5 this year.
When considering what compensation and benefits Indonesian employees care about, understanding the changing regulatory environment matters. Additional insights on Indonesia and its employee benefit norms can be found on Asinta’s country page for Indonesia.
If you are seeking qualified help for researching, reviewing, brokering, or implementing benefits in Indonesia, please contact us and we will respond to you within two business days.