Indonesia’s private healthcare firms to be shaken up as UHC the country tweaks scheme

The country will roll out the coordination of benefit scheme.

Private healthcare providers in Indonesia are increasingly reliant on progressive expansion for their growth, and analysts say they will be greatly affected with the roll out of the coordination of benefit scheme as part of Indonesia’s universal healthcare plan.

According to a report by BMI Research, leading firms such as Siloam International have been increasing the number of hospitals allocated to serve JKN patients, from 7 in 2014 to 12 by 2015.

“The roll out of the coordination of benefit scheme (COB), which allows patients to supplement their coverage under the JKN with private health insurance, has enhanced opportunities for private hospitals as it allows more middle-class Indonesians to afford treatment,” BMI Research said.

BMI Research added that healthcare providers participating in the COB include Siloam, Mitra Keluarga and Australia-based Ramsay Health Care which has expanded into Indonesia.
Meanwhile, for pharmaceutical firms, the trajectory of the JKN is integral as improved access to healthcare will serve to support the sales of medicines, BMI Research said.

“Local generic drugmakers including Kalbe Farma, Kimia Farma and Indo Farma have been the primary beneficiaries of the JKN. Under the scheme's regulations, generic drug use is to be encouraged for patients, driving up volumes sold,” BMI Research added.