This report assesses Indonesia’s health financing system. As an intrinsic and necessary element of universal health coverage (UHC), health financing is not only about assessing the sufficiency of resources, but also about how equitably and efficiently resources are raised, pooled, and allocated to make progress towards UHC.
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This policy paper assesses Indonesia’s health financing system in light of recent reforms and the government’s commitment to attaining universal health coverage (UHC) for its population by 2019.
... See More + The overarching goal of this assessment is to identify critical constraints and opportunities facing Indonesia’s health financing system in order to help accelerate and sustain progress towards UHC. The paper also includes an in-depth examination, using immunization as a case study, both for the context of UHC reforms as well as the country’s impending exit from donor financing. The purpose of health financing is to make funding available, as well as to set the right financial incentives to providers and to ensure that all individuals have access to effective public health and personal health care. All health financing approaches should try to fulfill three basic principles of public finance: (i) raise enough revenues to provide individuals with the intended packages of health services that assure health and financial protection against catastrophic medical expenses caused by illness and injury in an equitable, efficient, and financially sustainable manner; (ii) manage these revenues to pool health risks equitably and efficiently; and (iii) ensure the payment for, or purchase of, health services is carried out in ways that are allocatively and technically efficient. The paper is structured into following sections: section one is introduction. Section two gives background with a summary on Indonesia’s country context, including economic growth, poverty, shared prosperity, and a discussion of the macro fiscal environment within which the country’s health financing system operates. Section three gives overview of Indonesia’s attainment of key population health outcomes and progress towards UHC. Section four examines health care organization, delivery, and resources. In section five, the paper recaps Indonesia’s health-financing system, with a focus on four of the largest sources and agents of health financing in the country: government budgetary expenditures. Section six takes a close look at immunization as a disease-specific context for health financing. Section seven concludes the paper with a discussion and some policy options for consideration.
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The Indonesia Economic Quarterly (IEQ) has two main aims. First, it reports on the key developments over the past three months in Indonesias economy, and places these in a longerterm and global context.
... See More + Based on these developments, and on policy changes over the period, the IEQ regularly updates the outlook for Indonesias economy and social welfare. Second, the IEQ provides a more in-depth examination of selected economic and policy issues, and analysis of Indonesias medium-term development challenges. It is intended for a wide audience, including policymakers, business leaders, financial market participants, and the community of analysts and professionals engaged in Indonesias evolving economy.
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The Indonesia Economic Quarterly (IEQ) has two main aims. First, it reports on the key developments over the past three months in Indonesias economy, and places these in a longerterm and global context.
... See More + Based on these developments, and on policy changes over the period, the IEQ regularly updates the outlook for Indonesias economy and social welfare. Second, the IEQ provides a more in-depth examination of selected economic and policy issues, and analysis of Indonesias medium-term development challenges. It is intended for a wide audience, including policymakers, business leaders, financial market participants, and the community of analysts and professionals engaged in Indonesias evolving economy.
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Within the next two decades Indonesia aspires to generate prosperity, avoid a middle-income trap and leave no one behind as it tries to catch up with high-income economies.
... See More + These are ambitious goals. Realizing them requires sustained high growth and job creation, as well as reduced inequality. Can Indonesia achieve them? This report argues that the country has the potential to rise and become more prosperous and equitable. But the risk of 'floating in the middle' is real. Which pathway the economy will take depends on: (i) the adoption of a growth strategy that unleashes the productivity potential of the economy; and (ii) consistent implementation of a few, long-standing, high-priority structural reforms to boost growth and share prosperity more widely. Indonesia is fortunate to have options in financing these reforms without threatening its long-term fiscal outlook. The difficulties lie in getting the reforms implemented in a complex institutional and decentralized framework. But Indonesia cannot afford hard to not try harder. The costs of complacency, and the rewards for action, are too high.
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Within the next two decades Indonesia aspires to generate prosperity, avoid a middle-income trap and leave no one behind as it tries to catch up with high-income economies.
... See More + These are ambitious goals. Realizing them requires sustained high growth and job creation, as well as reduced inequality. Can Indonesia achieve them? This report argues that the country has the potential to rise and become more prosperous and equitable. But the risk of 'floating in the middle' is real. Which pathway the economy will take depends on: (i) the adoption of a growth strategy that unleashes the productivity potential of the economy; and (ii) consistent implementation of a few, long-standing, high-priority structural reforms to boost growth and share prosperity more widely. Indonesia is fortunate to have options in financing these reforms without threatening its long-term fiscal outlook. The difficulties lie in getting the reforms implemented in a complex institutional and decentralized framework. But Indonesia cannot afford hard to not try harder. The costs of complacency, and the rewards for action, are too high.
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