Accommodative policy to Cushion against Headwinds
Key Takeaways:
▪️ The government has yet to implement the standard inpatient class (KRIS) system to replace the current classification system on JKN.
▪️ Hence, if the government decides to implement a fixed rate, it should primarily consider the purchasing power of the class 3 cohort. In FY21, the average billing per capita ranged at IDR47-48k/month.
▪️ Despite the government already having ratified the new healthcare act in Aug-23, we believe it to still be a relevant discussion point.
▪️ Based on Ministry of Health’s data, from the 7 categories of specialists within the country, none exceeds the ratio of 0.03 per 1,000 citizens. This is way below Bappenas’s ideal level of 0.28 specialists per 1,000 citizens. The number of specialists in Indonesia as per Indonesia’s Doctor Council’s records is just shy of ~50k as of Nov-23, whereas WHO’s recommendation for Indonesia is closer to the figures of ~80k.
▪️ We maintain a NEUTRAL Outlook for the health sector because its implementation still needs to be studied further. We see that the back-and-forth policy and regulation hampers the expansion of the sector.
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