Indonesia’s Out-of-Pocket Health Spending Hits Rp 175 Trillion
- Indonesian households have spent Rp 175 trillion out-of-pocket on healthcare, highlighting a significant level of financial vulnerability among the population.
- According to data released on April 13, 2026, approximately 28.8% of Indonesian citizens are not protected by either commercial insurance or BPJS Kesehatan.
- The Financial Services Authority (OJK) is actively working to reduce this financial burden by encouraging a shift toward insurance-based healthcare financing.
Indonesian households have spent Rp 175 trillion out-of-pocket on healthcare, highlighting a significant level of financial vulnerability among the population. This expenditure reflects a high financial risk for citizens, as a substantial portion of the public lacks adequate health coverage.
According to data released on April 13, 2026, approximately 28.8% of Indonesian citizens are not protected by either commercial insurance or BPJS Kesehatan. These individuals must bear the full cost of medical treatments personally.
OJK Efforts to Expand Insurance Participation
The Financial Services Authority (OJK) is actively working to reduce this financial burden by encouraging a shift toward insurance-based healthcare financing. Ogi Prastomiyono, OJK’s Executive Head of Insurance, Guarantee, and Pension Fund Supervision, stated on April 13, 2026, that the authority is coordinating with various ministries and institutions to lower barriers for citizens joining commercial insurance programs.
The current contribution of commercial insurance to national health financing remains limited, accounting for approximately 5% of the total. OJK is collaborating with the Ministry of Health to increase this role and ensure that national health financing is no longer dominated by personal expenditures.
Ogi Prastomiyono, OJK Executive Head of Insurance, Guarantee, and Pension Fund Supervision
We are working together with ministries and institutions to lower barriers so that they can join commercial insurance programmes,
Public awareness regarding health protection appears to be increasing. By the end of 2025, the number of individuals insured within the life insurance industry reached 168.03 million people, representing an annual growth rate of 8.6%.
Context of National Health Expenditure
The challenge of high out-of-pocket spending is part of a broader effort by the Indonesian government to improve health expenditure tracking and resource allocation. This initiative aligns with the Health Transformation Agenda and the Mid-Term National Development Plan 2025-2029 (RPJMN).
Historical data indicates a gradual shift in spending patterns. In 2023, Indonesia’s total health expenditure was Rp 614.5 trillion, with public financing accounting for 57.4%. Out-of-pocket spending in 2023 stood at 28.6%, which was a decrease from 30.6% the previous year.
Despite these shifts, government health expenditure has remained relatively low, at 2.9% of GDP. Per capita health spending in 2023 was recorded at Rp 2.2 million.
The Ministry of Health has previously identified significant funding gaps to meet international standards. Health Minister Budi Gunadi Sadikin noted on June 4, 2025, that Indonesia would require an additional budget of approximately US$84 billion, or Rp 1.37 quadrillion, to match the healthcare standards of Malaysia.
To address systemic inefficiencies and fragmented data, the Ministry of Health, with support from the World Health Organization (WHO), began applying new tools and methodologies throughout 2024 to improve National Health Accounts. These efforts aim to transform health spending data into actionable tools for policymakers to create a more equitable health system.