Indonesia's healthcare spending to balloon to$47.1b by 2022 | Healthcare Asia Magazine
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Indonesia's healthcare spending to balloon to$47.1b by 2022

Healthcare expenditure will also rise as a percentage of GDP.

Private healthcare providers in Indonesia will continue to expand their presence in the market, with opportunities presented by the country’s long-term economic growth potential and low levels of public healthcare infrastructure, according to BMI Research.

The long-term rise of household incomes will provide a boon for private hospitals which generate a substantial amount of their revenues from out-of-pocket payments. Furthermore, the introduction of a Coordination of Benefits (COB) scheme, which according to the Ministry of Health regulation no. 71 2014 (Clause 21) allows patients to increase their entitled benefits by obtaining additional health insurance coverage from Indonesia's universal healthcare scheme, will also provide opportunities for private healthcare providers.

Here's more from BMI Research:

The COB scheme will incentivise patients, particularly middle-class Indonesians, to seek higher-value medical services.

Healthcare spending in Indonesia amounted to IDR403.9trn (USD30.2bn) in 2017 and we project this to rise to IDR692.2trn (USD47.1bn) by 2022 and IDR1,224trn (USD78.0bn) by 2027, at a 10-year compound annual growth rate of 11.7% in local currency terms and 10.0% in US dollar terms.

Healthcare expenditure will gradually increase as a percentage of GDP, rising from 2.98% in 2017 to 3.29% by 2027. On a per capita basis, healthcare spending will more than double, from USD114 in 2017 to USD269 by 2027. We note that private healthcare spending will continue to account for the majority of total healthcare expenditure and will outperform the public sector over our forecast period.

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