indonesia

Perspectives on Indonesia’s private hospital sector

Mrs Leona Karnali, CEO of Primaya Hospital Group and Head, International Relations of Indonesian Private Hospital Association speaks about the outlook for Indonesian private hospitals in 2021.

Speaker: Leona Karnali
CEO, Primaya Hospital Group, Indonesia
Head, International Relations Department, ARSSI (Indonesian Private Hospital Association)

Summary

In 2014, the Indonesian government established BPJS, a national social security programme that provides universal healthcare coverage to Indonesians. Private hospitals now make up 63% of hospitals that support BPJS services. The introduction of BPJS in 2014 has enabled the number of private hospitals to grow steadily, as they cater to a larger volume of patients who are now able to access healthcare services.

However, there is unequal distribution of hospital beds across Indonesia, due to a lack of qualified professionals and logistics challenges in more remote areas. The number of hospital beds per 1,000 people stands at 1.2, lower than that of other countries. Combined with strong growth in healthcare spending and the positive economic outlook in 2021, the number of hospitals in Indonesia is expected to increase. In addition, the government has passed the Omnibus Law, which is expected to improve the investment climate in the country and thus ease foreign investment into the country’s healthcare sector.

Private hospitals have been working together with public hospitals on the country’s COVID-19 response, including ramping up the number of hospital beds available to treat COVID-19 patients. The public-private partnership will continue in rolling out the vaccination programme. Mrs Karnali noted that the impact of COVID-19 is wide, including adjustments in SOPs to incorporate COVID-19 management, and the need to look at continuous care methods such as home-based care and drive-thru services.

Key takeaways:

  1. The outlook of private hospitals in Indonesia is positive, driven by the BPJS and higher health awareness amongst Indonesians.
  2. The way that hospitals operate will never be the same again after the pandemic. Hospitals will have to adapt to the new normal and trends in patient behaviour.
  3. The collaboration between private and public healthcare facilities during the COVID-19 crisis will go a long way in strengthening Indonesia’s healthcare sector in the future.

To view the ASEAN-Japan Dialogue on Healthcare sessions, please click here.

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