Financial and Political Challenge on Health System Reform in Indonesia

National Strategy Development Plan 2010-2014 clearly states that Indonesia is going to achieve MDGs by 2014. The government has committed to allocate at least USD 15 billions within this 5 years to reach the goals. In line with this strategy there are 7 reforms in health system that have to be implemented if we reach it. It is stated in the Health Law no36 in year 2009 that the health budget at national level must be minimally 5% from national budget and the budget for the local government must be at least 10% from local budget. Many local governments have succeeded to reach the requirement, but national budget for health is still about 2%.

Universal coverage is one of the main objective in reaching the vision. At present, around 63% of population is covered by either public or private health insurance. Universal coverage is strongly committed by almost the whole stakeholders, especially when political election is getting closer. The challenge is to prepare the highest access and good management for medical services that ensure Indonesian people secured by its national insurance. This presentation describes the framework and challenges to transfer from existing payment system to universal health insurance coverage which is believed that equity, social inclusion and high quality of health care in Indonesia are able to be achieved.