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 The burden of supporting the state-owned agency providing some of
the biggest health system in the world has become a growing fiscal
risk for Southeast Asia's largest economy.
BPJS Kesehatan, which provides universal health coverage for over
200 million people, has been facing cash problems not long after its
inception in 2014, regularly booking claims far exceeding premiums
it collects. The premiums are regulated by the government.
BPJS is set to record a 32 trillion rupiah ($2.28 billion) cash
deficit at the end of the year without government help and this may
grow more than two-fold to 77 trillion by 2024, company executives
have warned.
Starting next year, the government will raise premiums for the
cheapest insurance package by 65% to 42,000 rupiah a month and two
other packages by more than 100% to 110,000 rupiah and 160,000
rupiah per month, according to a statement by the Cabinet
Secretariat.
There will be additional funds given to the insurer by the state
this year, as the regulation calls for a retroactive increase from
August of state-covered premiums for 133 million poor and vulnerable
people by 83% to 42,000 rupiah a month.
Askolani, director general of budgeting at the finance ministry,
said the government was still calculating how much it would have to
transfer to BPJS based on the new rules.
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BPJS chief executive Fachmi Idris did not respond to a request for
comment.
The finance ministry had originally planned for an increase for the
cheapest package to start in September, but after receiving backlash
from trade unions, President Joko Widodo ordered for this to be
reviewed.
Muhammad Nafan Aji, a Binaartha Sekuritas analyst, said the premium
increase can be a positive catalyst for listed companies in
healthcare and pharmaceutical, such as hospital operator Mitra
Keluarga Karyasehat and Kalbe Farma.
"Billing payments to BPJS will be more flexible, easier," Aji said,
adding that better financial position would allow the insurer to pay
hospitals on time, ensuring payments to pharmaceutical companies as
well.
Last year, the government ordered an audit into BPJS after it
injected 10.1 trillion rupiah to help the insurer manage its
cashflow. State auditors have given BPJS executives some
recommendations to improve governance to get the company out of the
red.
(Reporting by Tabita Diela; Additional reporting by Maikel Jefriando;
Writing by Gayatri Suroyo; Editing by Muralikumar Anantharaman)
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