Indonesia’s Private Health Sector Market in the JKN Era

Indonesia’s national health insurance scheme (Jaminan Kesehatan Nasional, or JKN) supports the government’s commitment to promoting health and well-being among its citizens. Responding to the demand for health services created through JKN will require strong partnership between the government and the private health sector. How have JKN policies affected the private health sector? How do the private sector’s responses expand access to high quality healthcare at an affordable cost? Do JKN processes support the private health sector remaining robust and continuing to invest and grow?

The U.S. Agency for International Development (USAID)-funded Health Policy Plus (HP+) project and Indonesia’s National Team for the Acceleration of Poverty Reduction (TNP2K) conducted analysis to explore these questions, focusing on JKN’s impact on pharmaceutical and medical device companies and private hospitals. We reviewed whether new actors have joined the market following JKN implementation—especially in geographical areas that were not well-served previously—whether the private sector’s products or services have diversified, and whether JKN has motivated healthy competition between companies and hospitals.