2017, Indonesia's National Health Insurance (BPJS Kesehatan) Deficit Projected to Exceed Rp 10 Trillion

The Indonesian Healthcare and Social Security Agency (BPJS Kesehatan) is projected to record a deficit exceeding Rp 10 trillion (approximately US$700 million) this year. As of August 2017 alone, the deficit had already reached Rp 8.52 trillion. The mismatch between premium contributions and healthcare benefits has resulted in BPJS Kesehatan experiencing a deficit since 2014.

Calculations show that the contribution for recipients of government-sponsored healthcare (Penerima Bantuan Iuran or PBI) should be Rp 36,000 per month, but they only pay Rp 23,000. This represents a shortfall of Rp 13,000 per month per PBI participant. Similarly, for Class III participants, the contribution should be Rp 53,000 per month, but they only pay Rp 25,500. Likewise, for Class II participants, the contribution should be Rp 68,000 per month, but they only pay Rp 51,000.

In 2015, the government covered BPJS Kesehatan's deficit with a State Capital Injection (Penyertaan Modal Negara or PMN) of Rp 5 trillion. The following year, this injection amounted to Rp 6.8 trillion. However, to cover this year's deficit, the government has not allocated funds in the 2018 PMN. Discussions have emerged suggesting that the BPJS Kesehatan deficit will be funded from cigarette excise and tax revenues.