Indonesia’s Ministry of Health has introduced sweeping reforms aimed at lowering healthcare costs while improving the quality of medical services. The initiative includes centralized procurement of medicines and medical supplies, along with a new hospital accreditation system that evaluates healthcare providers based on patient outcomes rather than periodic administrative reviews.
Health Minister Budi Gunadi Sadikin said the reforms are designed to address rising healthcare costs, strengthen patient safety, and improve transparency across the national healthcare system.
Centralized Procurement Reduces Drug Costs
One of the government’s key strategies is implementing pool procurement for medicines and consumable medical supplies using data from the SatuSehat digital health platform. According to the Ministry of Health, the centralized purchasing system has already generated savings of between IDR 1 trillion and IDR 2 trillion from the initial pharmaceutical budget by improving pricing transparency and purchasing efficiency.
The ministry plans to expand the procurement mechanism to public and private hospitals nationwide, with the goal of lowering the cost of medicines and medical devices across Indonesia. Budi said broader participation from hospitals is expected to increase purchasing power while reducing overall healthcare expenses for both providers and patients.
Accreditation to Be Based on Clinical Performance
The Ministry of Health is also replacing the traditional hospital accreditation model, which has largely relied on administrative evaluations conducted every five years. Under the new approach, hospitals will be assessed continuously using real-time clinical performance indicators, including patient recovery rates and treatment success.
Officials say hospitals with poor surgical outcomes or declining patient safety indicators could see their accreditation status downgraded before the standard accreditation cycle ends. The ministry believes this outcome-based evaluation will encourage hospitals to focus more on the quality of patient care rather than documentation and compliance alone.
Government Accelerates BPJS Claim Payments
To maintain financial stability within Indonesia’s healthcare system, the government also reaffirmed its commitment to accelerate the disbursement of approximately IDR 20 trillion in outstanding BPJS Kesehatan claims by August 2026. The funding is expected to strengthen hospital cash flow and ensure uninterrupted healthcare services, particularly for private healthcare providers that play a major role in the National Health Insurance (JKN) program.
According to Ministry of Health data, 1,699 private hospitals, representing 83.7 percent of all private hospitals in Indonesia, currently cooperate with BPJS Kesehatan. In addition, 1,214 private hospitals have met the requirements for the government’s Standard Inpatient Rooms (KRIS) program, while 1,587 hospitals have implemented Electronic Medical Records (EMR) systems.
Expanding Access to Advanced Medical Care
The ministry is also expanding partnerships with private hospitals to improve access to specialized medical treatment throughout the country. By 2026, six private hospitals have been designated as part of Indonesia’s network of Main Education Providing Hospitals (RSPPU). The government plans to increase that number to 154 hospitals by 2030.
Current collaborations include kidney transplantation services between Dr. Sardjito Hospital and Royal Mandaya Puri Hospital, as well as stem cell treatment partnerships involving Cipto Mangunkusumo Hospital (RSCM) and Ciputra Raya Hospital Tangerang alongside Ciputra Citra Garden City Hospital.
The Ministry of Health believes that combining cost efficiency, transparent quality monitoring, and expanded access to advanced medical technologies will strengthen Indonesia’s healthcare system and reduce the need for citizens to seek treatment overseas.
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