Education & Health
From The Report: Indonesia 2014
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In 2002, a new amendment to the constitution required that central and local authorities spend 20% of their budgets on education, a level achieved in only one year, 2009. The Indonesian education system is large, well-funded, fast growing and quickly improving. Despite some difficult years as a result of the 1997-98 Asian financial crisis and some ineffective policies instituted in its aftermath, the government has made a significant commitment to the sector. In 2013 the government increased the number of years of compulsory education from nine to twelve, the former having been a requirement since 1994. If Indonesia can carry out its programmes effectively, the improvements will be reflected in test scores and international rankings. Foreign universities would then be keener to form partnerships that further raise the country’s global standing.
While Indonesia has faced significant setbacks in the past, it has made real progress in health care provision and the system is about to dramatically improve. The country is currently implementing a universal healthcare plan and, if all goes according to schedule, by 2019 everyone in the country will receive medically necessary services free of charge. Reimbursement rates need to be set at a level that the government can afford, but one that attracts the full participation of for-profit medical groups. Ultimately, the sector would like to attract inward medical tourism dollars and begin competing with the likes of Thailand, the Philippines and Malaysia. For international medical groups, the country will become a major target for business and investment, with new equipment, technology and capital needed to build the sector. If the government allows for enough international participation on good terms, the Indonesian health sector will be a profitable and growing market for health care operators.

This chapter contains interviews with Nafsiah Mboi, Minister of Health; and Hasbullah Thabrany, President, South-east Asian Public Health Education Institutions Network.

Articles from this Chapter

Overview

Subjects of change: The government’s top-down initiatives are proving a challenge
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The Indonesian educational system is large, well funded, fast growing and quickly improving. Despite some difficult years as a result of the 1997-98 Asian financial crisis and some ineffective policies instituted in its aftermath, the government has made a significant commitment to the sector. Both the central and local authorities are required to spend at least 20% of their budgets on education. This benchmark, now enshrined in the fourth amendment to the constitution, is a level of spending achieved…

Analysis

Hairpin turns: The road to educational reform has been winding
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Indonesia has a sizeable higher education system, encompassing some 92 public universities and 3000 colleges. The country has tried a number of different structures in an attempt to make these institutions both financially strong and effective in educating people regardless of economic background. So far, at least, it has not found the right mix of public control and private participation. Measured by head count, the country’s tertiary education is hitting a clear growth patch. Aided by its demographics…

Overview

All change: Plan to provide universal care has opened up a host of opportunities
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While Indonesia has traditionally had limited resources to commit to health, it has provided a decent basic service to its citizens. According to the World Health Organisation (WHO), the country has an adequate level of primary care, delivered through both health centres and sub-centres. Indonesia has faced significant setbacks in the past, but it has made real progress in health care provision, and the system is about to dramatically improve. The country is currently implementing a universal health…

Analysis

Growing interest: The private sector is set to become more involved in the industry
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While the Indonesian government works to build a universal health care system for its citizens, the private sector is active too. It is sitting on the sidelines waiting to see if the government programme makes sense from a business point of view, but it is still actively building up its capacity and expertise. Private health provision in Indonesia is quickly evolving and could become internationally competitive in a short period, providing quality care and opportunities for international investors…

Interview

Nafsiah Mboi, Minister of Health: Interview
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Interview:Nafsiah Mboi Is health tourism a threat to local service providers? NAFSIAH MBOI: While I know this issue has many people concerned, my priority is to ensure the quality of the health care services we have in Indonesia. These will cater to the majority, for whom health tourism is not an option. The chief focus is on addressing quality concerns across primary and secondary care and on ensuring sufficient staffing and medication. In theory, if we improve domestic care, people will…

Interview

Hasbullah Thabrany, President, South-east Asian Public Health Education Institutions Network: Interview
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Interview:Hasbullah Thabrany What are your priorities for the National Social Security System, and how do you see its implementation alongside the Social Security Organising Body (BJPS)? HASBULLAH THABRANY: We decided to utilise public financing to ensure that those most in need would receive health care for free, while still securing operational efficiency by using competition by market players. The system’s success is based upon public refinancing, whereby the population shares the burden…