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Deloitte Indonesia Perspectives First Edition September 2019 Deloitte Indonesia Perspectives | First Edition, September 2019 Deloitte Indonesia Perspectives First Edition September 2019 Deloitte Indonesia Perspectives | First Edition, September 2019 02 Deloitte Indonesia Perspectives | First Edition, September 2019 Deloitte Indonesia Perspectives First Edition September 2019 03 Deloitte Indonesia Perspectives | First Edition, September 2019 Editorial Board Editorial Board Leader Claudia Lauw Lie Hoeng Editor in Chief Steve Aditya Managing Editor Eleonora Bergita Editorial Team Vanda Gabriela Singing Glory Oeripto Adhitya Maulana Ichsan Editorial Assistance Warwick Hesketh Graphic Designers Fransisca Dewanti Mayang Michael Bima Radhitia Photographer Okky Destriyan Effendy If you would like to receive future Deloitte Indonesia publications please send an e-mail to: [email protected] 04 Deloitte Indonesia Perspectives | First Edition, September 2019 Introduction from Deloitte Indonesia Country Leader I am are very pleased to announce our new publication, which is focused primarily on current Indonesian issues: Deloitte Indonesia Perspectives. Indonesia has a unique set of challenges and opportunities. With a population of more than 269 million, this fast emerging country has a number of key characteristics such as: it represents a huge market opportunity for various goods and services; it has experienced a significant and increasing rate of internet penetration in the market; Indonesians are comprised of various cultural and religious backgrounds; they have unique creativity; and we see the energetic spirit of young people who are struggling to establish and sustain their careers. Indonesia has a strong and credible government that has maintained a focus on infrastructure development, while also providing voters with the opportunity to participate for the first time in the generally trouble free simultaneous presidential and legislative elections which took place in April. Our intention with Deloitte Indonesia Perspectives is to explore some of Indonesia’s unique characteristics in the articles included in this first edition and also in future editions. We hope that you – our readers – will enjoy our articles and will be inspired by our commentary. In this edition, in the article on the “Continuity of JKN-KIS Program”, we offer some thoughts about the very serious challenges that all stakeholders are currently having to confront, in order to achieve the long held objective of sustaining a more robust national health insurance program which is managed by BPJS Kesehatan and which is available to all Indonesians. In another article we discuss Indonesian millennials and the challenges that they and other age groups in the workforce are facing with the introduction of Industry 4.0. We also share insights provided by Deloitte Indonesia’s Life Science and Health Care Group Leader about the future of the healthcare sector in Indonesia. Finally, we present the results of our latest survey of consumers and their preferences about consumer goods and also about the challenges and opportunities for the digital market. We do hope that you enjoy and are inspired by Deloitte Indonesia Perspectives! Best wishes from Deloitte Indonesia, Claudia Lauw Lie Hoeng Deloitte Indonesia Country Leader 05 Deloitte Indonesia Perspectives | First Edition, September 2019 06 Deloitte Indonesia Perspectives | First Edition, September 2019 Contents 4 5 8 Editorial Board Introduction from Ensuring the Deloitte Indonesia Sustainability of JKN- Country Leader KIS for the Indonesian People 24 37 38 Millennials in Industry Highlights on A Cup of Coffee with 4.0: A Gift or a Threat Indonesian Food Industry Leader: to Indonesian Human Industry Welcoming the Future Resources? of the Healthcare Business in 2019 42 55 56 Have Indonesians’ Contact Us Deloitte Indonesia Shopping Patterns Publications Shifted Towards Digital? 07 Deloitte Indonesia Perspectives | First Edition, September 2019 Ensuring the Sustainability of JKN-KIS for the Indonesian People Intended to cover the health costs of all Indonesians, the JKN-KIS national insurance program is now on the brink. How can this program survive? 08 Deloitte Indonesia Perspectives | First Edition, September 2019 BPJS Kesehatan (Healthcare BPJS), Current hospital, although they still need to be prepared to face Plans and Problems long queues. In Thailand, since 2002 the government has When the Ministry of Health of the Republic of Indonesia provided several different health insurance schemes, was led by Minister Dr. Nafsiah Mboi, Sp.A, MPH in 2013, namely for civil servants and all their family members, and began planning the birth of a national insurance including parents and in-laws, private employees and program, quite possibly she did not imagine that, six informal workers. Premium contributions are funded years after the national health insurance program was out of the state budget, except for family members of inaugurated by President Susilo Bambang Yudoyono private sector employees, which are also guaranteed by on December 31st, 2013 at the Bogor Presidential the government. For the purposes of this national health Palace, it would experience very challenging financial insurance scheme, the Thai government allocates no less circumstances as is currently the case. than 13.1 percent of the state budget. The amount turns out to be very useful, as evidenced by the drastic decline As of May 2019, the number of people who have enrolled in the poverty rate since this national insurance program in Healthcare BPJS had risen to about 221.6 million of became available. which 36 million are independent-segment members. However, collectability within this segment is only 53% Indonesia, based on a National Development Planning (which means only around 19 million members are Agency (Bappenas) projection in 2018, has a population paying their monthly premiums). The shortfall in monthly of around 265 million, which is the equivalent of 8.2 times premium payments by independent segment members the population of Malaysia, 2.5 times the population of is one of the factors which has contributed to Healthcare the Philippines, 10 times the population of Taiwan and BPJS’s deficit, which in July 2019 is estimated to be Rp about twice the population of Japan. Indonesians live 28 trillion, following continuous deficits incurred by this on 5,000 of the 17,504 islands that make up Indonesia, public legal entity since 2014. which consists of 33 provinces, 497 districts/cities, 6,652 sub-districts and 77,012 villages/kelurahan. With its The national health insurance program actually began large population, uneven population distribution and to be initially planned many years ago, dating back diverse geographical conditions, the implementation of to 2004, starting with the drafting of Law No. 40 of national health insurance in Indonesia is a very difficult 2004 concerning the National Social Security System challenge, especially if the insurance is primarily social (SJSN) and Law No. 24 of 2011 on the Social Security and non-commercial in nature and aims to benefit all Management Agency (BPJS), with inputs from various Indonesians. In Kompas Daily, November 12th, 2018, relevant stakeholders. The Ministry of Health, PT. Askes Prof. DR. Dr. Nila Moeloek, Sp.M, who is Minister of Indonesia and PT. Jamsostek, with assistance from Health in the government of President Joko Widodo and various other parties, compiled a roadmap to prepare Vice-President Yusuf Kalla, stated that the country’s wide the national insurance scheme, with one goal, namely the and heterogeneous geographic area was a challenge achievement of National Health Insurance (INA-Medicare) for the delivery of evenly distributed healthcare for the entire population of Indonesia by 2019. services in Indonesia. The same thing was stated by Laksono Trisnantoro, Professor of Health Policy and The idea of establishing a national health insurance Administration from Gadjah Mada University. According program is based on sound principles. If you look at to him, people who live in remote areas often do not get neighboring countries, some of them have implemented the same services. Often in remote areas residents do national health insurance programs using different not get adequate healthcare services because of the lack coverage and financing schemes. In the Philippines, the of suitable healthcare facilities and qualified personnel National Health Insurance Act has been implemented that are available in large cities. since 1995, by adopting single hospital and doctor rates that apply nationally. The insurance scheme is similar to But no matter how large the challenges are and while the JKN-KIS program, with contributions of 2.5 percent there are still many shortcomings in its implementation, of monthly income shared by workers and employers. the existence of the national insurance program, which Meanwhile, contributions by workers in the informal was originally called Kartu Indonesia Sehat (KIS), and sector are set at 120 Pesos (around Rp 20 thousand). It is subsequently has become known as the JKN-KIS program different in Malaysia, as health insurance in that country (National Health Network-Healthy Indonesia Card), relies on state budget funds that are sourced from taxes. represents a new chapter in the history of healthcare For the cost of hospitalization, insurance members pay of Indonesia, with the participation of the state in 3 Ringgit (or Rp 10,100) per day for all costs. Insurance supporting the lives of its people dominant in helping to participants do not need to pay any fees if they go to the manage the
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