Indonesia's Health Insurance Faces Default

Indonesia’s universal public health insurance program is at risk of default by 2026, following a deficit of 20 trillion rupiah ($1.2 billion) in 2024. This financial strain stems from escalating claims that have surpassed contributions, with the government showing little likelihood of raising premiums. The growing deficit poses a significant threat to healthcare services for millions of Indonesians, who increasingly depend on the program for affordable medical care. Rising fraudulent claims and hospital inefficiencies further exacerbate the financial challenges, putting the sustainability of the country’s largest health initiative in jeopardy.

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