Health-Care Spending to Double by 2018

The private sector is tipped to soon bear a greater burden of health-care spending. (JG Photo/Yudhi Sukma Wijaya)

By : Damiana N. Simanjuntak | on 11:17 AM March 30, 2013
Category : Health

The private sector is tipped to soon bear a greater burden of health-care spending. (JG Photo/Yudhi Sukma Wijaya) The private sector is tipped to soon bear a greater burden of health-care spending. (JG Photo/Yudhi Sukma Wijaya)

Business research group Frost & Sullivan predicts Indonesia’s health-care spending will reach $60.6 billion in 2018, more than double last year’s estimate of $26.4 billion.

Nitin Dixit, a senior health-care industry analyst at Frost & Sullivan, said in Jakarta on Wednesday that health care spending in Asia-Pacific countries was expected to double in line with increasing demand for quality health-care services and better life expectancies.

Dixit said the Indonesian market would be supported by government programs and policies resulting in increased spending and access to health services.

“In Indonesia, health care spending will reach $60.6 billion in 2018, assuming the average growth rate is 14.9 percent per annum from 2012 to 2018,” Dixit was quoted as saying by Investor Daily.

During the same period, Dixit said per capita spending on health care would grow 13.8 percent a year, from $108.90 last year to $237.10 in 2018.

Frost & Sullivan also forecast that the private sector would play a greater role in the country’s health-care sector and overtake spending sourced from the government. It estimated the private sector will account for 53 percent of health-care spending in 2018, up from 49 percent now.

Sutoto, the chairman of Indonesian Hospital Association, agreed with the assessment, adding that Indonesia’s health-care industry would produce abundant opportunities for growth, particularly after the full implementation of universal health care in 2014.

The universal health-care scheme, written into law by the House of Representatives in 2011, aims to provide health insurance for 117 million Indonesian workers starting next year.

The current scheme, managed by state-owned insurer Jamsostek, only provides coverage to 11.5 million workers.

President Susilo Bambang Yudhoyono has called for an initial fund of Rp 25 trillion ($2.6 billion) for the program.

“Hospitals will be full when universal health care comes into effect due to the ease of access to health-care services. On the other hand, there will be more people demanding better-quality services,” Sutoto added.

Hannah Nawi, associate director of health-care practice for the Asia Pacific at Frost & Sullivan, said the shift in people’s lifestyles would also boost growth in health care.

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