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Jakarta Post

Higher BPJS premiums, tobacco excise to reduce people’s purchasing power, experts say

  • Riska Rahman

    The Jakarta Post

PREMIUM
Jakarta   /   Thu, January 30, 2020   /  11:30 am
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Hold tight: A patient and a member of Social Health Insurance Provider (BPJS) is pushed by her family member after undergoing a medical check-up at Bahteramas hospital in Kendari, Southeast Sulawesi. (Antara/Jojon)

A sharp increase in national health insurance premiums and the tobacco excise amid the country’s sluggish economic growth will affect the sales of consumer goods and reduce the people’s purchasing power, analysts have said. President Joko “Jokowi” Widodo signed in October a new presidential regulation (Perpres) on healthcare security, stipulating a rise in premiums under the Health Care and Social Security Agency (BPJS Kesehatan) in a bid to help the agency reduce its huge financial deficit. In the new regulation, the government raised the premium for first-class service by 100 percent to Rp 160,000 (US$11.40) per month per person, while more than doubling the cost for second-class service from Rp 51,000 to Rp 110,000. The government also hiked the premium for third-class service by 64 percent from 25,500 per person per month to Rp 42,000. BPJS Kesehatan,...