Health Budget Increased by 5% in the 2025 State Budget

The Indonesian government has allocated Rp197.8 trillion (approximately US$13.1 billion based on current exchange rates) for the health budget in the 2025 State Budget (RAPBN). This represents a 5.4% increase from the similar budget outlined in the 2024 APBN outlook.

"This budget is intended to improve the quality and affordability of healthcare services, accelerate the reduction of stunting and infectious diseases such as tuberculosis, and provide free health check-ups," said President Joko Widodo in his RAPBN 2025 speech in Jakarta on Friday, August 16, 2024.

The majority of the health budget in the 2025 RAPBN will be channeled through central government spending (BPP). Specifically, Rp103.65 trillion through ministry/agency spending (K/L) and Rp21.96 trillion through non-K/L spending.

Furthermore, the health budget will also be allocated through transfers to regions (TKD) amounting to Rp69.97 billion.

Broadly speaking, next year's health budget policy will be directed towards:

1. Providing nutritious food for pregnant/breastfeeding mothers and toddlers.
2. Accelerating the reduction of stunting through strengthening specific and sensitive interventions in 12 priority provinces.
3. Improving the effectiveness of the National Health Insurance (JKN) by increasing participation, access and quality of health services, and financial protection for participants.
4. Improving access, quality, and availability of primary and referral healthcare facilities and infrastructure.
5. Improving inter-agency performance in the provision of facilities and infrastructure.
6. Increasing the number, quality, and distribution of health resources.
7. Gradually strengthening the independence of the pharmaceutical industry.