The Centre for Indonesia’s Strategic Development and Initiatives recently published and launched a White Paper on Indonesia’s Health Sector Development (2024-2023). The Paper includes 14 Chapters. This Chapter titled Invest Wisely, Execute Strategically, Achieve More- Indonesia’s pursuit of Universal Health Coverage is on Indonesia’s health financing system.
The paper focuses on analysing key policy choices regarding Indonesia’s health financing system configuration and functions of revenue collection, risk pooling, and purchasing. This study concerns their respective objectives of
- equitably and efficiently raising sustainable revenues
- pooling funds efficiently and equitably to ensure financial protection for the Indonesian population
- purchasing services in an allocatively and technically efficient manner
The paper proceeds by examining the current organisation of Indonesia’s health financing system, serving as the foundation for any potential reforms. It elucidates the transformation undergone by Indonesia in the incorporation of various health financing schemes on both the demand and supply sides. It analyses the interplay between these components and their impact on the attainment of policy objectives, as well as on broader systemic functionalities and overarching system-level objectives. The section on structural challenges involves recognizing and analysing how critical contextual elements impact Indonesia’s ability to maintain the attainment of policy objectives, as well as the array of policy alternatives that can be contemplated. Finally, the paper concludes with a set of recommendations that explore the direction in which reforms should aim to steer the system.
