‘Joko-care ‘ is a term we coined for Indonesia’s universal JKN insurance scheme that the healthcare and social security agency (BPJS) administers. The government’s ambitious plan to offer affordable healthcare for the whole population by 2019, should structurally boost such spending across the country. The number of programme members hit 165m in March 2016, representing 85% of its full-year target.
Following the launch of Joko-care in2014, Indonesia’s low level of hospital beds per capita is gearing up for change. This has supported a structural boost to domestic medical spending and presents a major opportunity for local hospital operators, particularly ones with strong scaling capacity, solid financials and good brand equity.
The country has historically lagged behind its Asean neighbours given its low per-capita coverage of hospital beds, doctors and nurses, as well as its low ratio of healthcare spending to GDP. This Asian archipelago would need more than 2,500 hospitals to match Thailand’s penetration of 2.1 hospital beds per 1,000 people. Analysing other countries’ healthcare spending shows that the fastest pace of growth is achieved when GDP/capita reaches US$2,500-5,000, which Indonesia has recently attained.