Indonesia’s social insurance reform is the critical goal being universal health coverage for all by the year 2019. It has come into form with a single-payer umbrella program in 2014. Jamkesmas is the Government-financed health insurance program for the poor and near-poor. It has been combined and unified with other social insurance programs.

Educating from Jamkesmas may start a better groundwork and application of universal health coverage for Indonesia by 2019.

Axis Capital, a global insurer and reinsurer, providing clients and distribution partners with a broad range of specialized risk transfer products and services, a group of companies with branch offices in Bermuda, Australia, Canada, Europe, Latin America, Singapore and the United States is at one with the universal healthcare for Indonesia.

What successes can Jamkesmas claim?

  • About 47 percent of poor and near-poor households were covered under the program.
  • Outpatient and inpatient utilization rates increased among program cardholders.
  • Levels of catastrophic payments declined.
  • Participation of private providers increased.
  • More than 300 complementary local Jamkesmas-inspired programs were initiated across the country.

Yet considerable challenges remain, including the following:

  • Nearly 60 percent of the population remain without any coverage, including millions of Indonesians working in the informal sector.
  • Out-of pocket spending remains high even among those with coverage.
  • Lack of equitable access to quality health services in rural, remote areas.
  • Evidence of considerable mistargeting and leakages to non-poor families.
  • Low levels of awareness of benefits.
  • Low utilization of health services.
  • Regional inconsistencies in the availability of the basic benefits package, and poor accountability and feedback mechanisms.

Key Lessons Learned from Jamkesmas to Achieve Universal Health Care in Indonesia

  • Improve targeting for poor and near-poor, as more than half of Jamkesmas beneficiaries were not from these groups. Avoid scam.
  • Improve socialization to increase public awareness.
  • Ensure supply-side availability and readiness. The experience of Jamkesmas highlights the significant disconnect between entitlements on paper versus what the system will deliver. And also to avoid double-dealing.
  • Ensure sustainability through improving efficiency and effectiveness of implementation and not just cover-up. Jamkesmas was entirely financed through central government taxes, and premiums were not based on sound actuarial calculations. Supply-side constraints and supply-side subsidies gave the false impression that financing of Jamkesmas was sufficient; when the reality was that the program did not reimburse the full cost of services and relied heavily on supply-side subsidies.
  • Make provider payment mechanisms more results-focused. Under Jamkesmas, payments to providers were basically fee-for-service (including diagnosis-related groups for hospital-based care). At present, there are no additional incentives to improve quality and provider performance. Providers are not given incentives to achieve targets.
  • Establish a robust and reliable information system to support monitoring and evaluation, and continuously update the calculation of the program’s costs.
  • Learn lessons from selected provinces and districts that have attained universal health coverage, such as Bali, Aceh, and Jakarta.  The Government can learn from these regions’ experiences and estimate costs from existing samples.
  • Always review your plan.



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