Jakarta. Health Minister Budi Gunadi Sadikin announced on Friday that the state health insurance provider, BPJS Kesehatan, currently holds around Rp 50 trillion ($3.1 billion) in cash reserves, indicating its financial stability despite plans to raise premiums starting next year.

Budi dismissed rumors that BPJS is facing a Rp 20 trillion deficit and clarified that the proposed premium hike is not a response to financial shortfalls.

“The term ‘deficit’ may refer to the balance between premium income and expenditures,” Budi explained to reporters at Harapan Kita Hospital in West Java, addressing concerns about the insurer's financial state.

“We need to be cautious when using the term ‘deficit’ because BPJS still has tens of trillions in cash reserves. As far as I know, BPJS has over Rp 50 trillion in cash,” he added.

Earlier this week, BPJS Kesehatan CEO Ali Ghufron Mukti acknowledged the possibility of a deficit this year, citing a surge in healthcare claims and a significant increase in hospital visits covered by the scheme.

Ghufron noted that hospital visits under BPJS coverage have risen dramatically, from an average of 252,000 visits per day a few years ago to 1.7 million visits per day.

Currently, the BPJS premium is capped at Rp 150,000 ($9.4) per person per month, while the subsidized monthly premium for low-income families is set at Rp 35,000 per person.