State Insurers ‘Ready’ for World’s Largest Health Scheme

Jakarta Globe, Edi Hardum & Dina Manafe, December 12, 2013

People queue to see a doctor at the Fatmawati hospital in Jakarta on May 17,
 2013. Indonesia intends to implement a nationwide healthcare plan, with the aim to
 cover all Indonesians by 2019 from the 52 percent who currently have some form of
insurance. (Reuters Photo)

State-owned insurance companies are bracing for the rollout of what will be the world’s largest health-care scheme, set to be officially introduced across Indonesia next month.

Fachmi Idris, the chief director of health insurance provider Asuransi Kesehatan, or Askes, said on Wednesday that the company almost completed the transfer of assets from other state insurers as part of the program to consolidate all coverage under a single provider.

The existing providers contributing to the scheme include Jamsostek, which manages insurance for formal workers; Jamkesmas, which was set up to provide free health insurance to the poor; and Asabri, which manages insurance for serving and retired armed forces personnel.

“The transfer process is still ongoing, but we expect it to be completed by the end of the year, in time for the implementation of the new health insurance scheme in 2014,” Fachmi said.

Under the scheme, mandated by the National Social Security Law, a new umbrella agency called the Social Security Organizing Body (BPJS) must be in place by Jan. 1 next year to manage the health coverage for Indonesians already subscribed to the various other schemes. The BPJS will have an estimated 117 million subscribers to begin with.

Besides those covered by Jamsostek, Jamkesmas and Asabri, the BPJS will also insure domestic workers and contract-based workers who currently do not qualify for Jamsostek.

Fachmi said Askes was working with the Home Affairs Ministry to compile a database of Indonesians who would be covered by the BPJS.

He said Askes was also carrying out internal improvements and systems and technology upgrades to prepare for the implementation of the scheme.

Askes this year opened five more branch offices across the country and upped its headcount. Fachmi said the company would need at least 6,000 employees to support the migration to the BJPS scheme. Askes currently employs 4,000 people and plans to recruit another 1,500 staff.

Vice President Boediono, speaking during a visit on Wednesday to Askes, called on the company to ensure that all the supporting facilities and staff were in place before the Jan. 1 deadline.

“I hope all the related ministries and institutions responsible for the health sector can take the concrete action needed” to ensure the success of the program, he said.

Elvyn G. Massaya, the Jamsostek chief director, said his company was also ready for the rollout.

“Anyone who wants to access the workers’ insurance service will no longer have to wait for long,” he said, citing the new computerized claims system put in place by the company as part of preparations for integration under the BPJS.

“With this kind of service, the BPJS will be seen as a world-class insurance service,” Elvyn added.

Jamsostek now covers more than 11.5 million workers, or just over a tenth of the 110 million Indonesians employed in the formal sector, according to data from the Central Statistics Agency (BPS).

The company manages more than Rp 130 trillion ($10.8 billion) in funds.