Indonesia Lags Behind in ASEAN Healthcare Spending

Indonesia's healthcare expenditure appears low compared to several Asian countries. According to World Development Indicators, in 2014 Indonesia's healthcare expenditure was only 2.8 percent of its Gross Domestic Product (GDP). This figure is below the average expenditure of Southeast Asian (ASEAN) countries, which stands at 4.6 percent.

Vietnam's healthcare expenditure reached 7.1 percent of its GDP, the highest in ASEAN. Thailand's expenditure was 6.5 percent and Cambodia's 5.7 percent. Meanwhile, Indonesia's healthcare expenditure ranked third lowest in Southeast Asia. China's healthcare expenditure was 5.5 percent of its GDP and India's 4.7 percent.

Indonesia's healthcare expenditure still has the potential for growth. Frost & Sullivan projects that Indonesia's per capita healthcare expenditure will grow to US$237 in 2018, compared to US$108 in 2012. The growth of the middle class and the National Health Insurance program will drive increases in domestic healthcare spending.