BMI View: The rollout of Indonesia's national health insurance programme for one of the world's largest populations will provide significant revenue-generating opportunities for pharmaceutical companies. We address the challenges faced by the healthcare sector in each region, and how economic, demographic and other factors shape the provision of healthcare across the country. We also point out the strengths and weakness in each region's healthcare system, and highlight the opportunities and risks for businesses and investors.
Indonesia's large population, wealth of natural resources, strong economic growth prospects and local governments' determination to improve healthcare service are the key factors to drive the country's healthcare expenditure growth. However, Indonesia has an extremely young population, with 44% of the nation younger than 25. In general, ageing populations are expected to consume more healthcare resources than young populations. In addition, part-time workers make up nearly 70% of the total employed Indonesians, while official unemployment was 5.9% in Q113. This means that there is a substantial pool of people that are unemployed or underemployed, and hence less of a contribution to the national healthcare resources.
The rollout of Indonesia's national health insurance programme will have a significant impact on the country's healthcare landscape. Universal social health insurance coverage will enable all citizens to access and enjoy basic medical services, and at the same time raise healthcare costs. As much of the restructuring currently remains on paper, the country may struggle to handle the surge of patients seeking free medical treatments.
Indeed, when the pilot health insurance scheme was introduced by the Indonesian government in Jakarta in November 2012, experts feared the programme would overwhelm the city's public hospitals. BMI notes that in Java and Sumatra, Indonesia's most populous regions, healthcare resources, such as...