In 2025 and beyond Indonesia is poised to revolutionize health expenditure tracking to ensure efficient resource allocation and accelerate its journey towards universal health coverage (UHC). In alignment with the country’s Mid-Term National Development Plan 2025–2029 (RPJMN), and its overall Health Transformation Agenda, the Ministry of Health (MoH), with the World Health Organization’s (WHO) support, has begun applying cutting-edge tools and methodologies to significantly improve health expenditure tracking and create a more equitable health system.
In Indonesia, as in many countries, fragmented data and inconsistent methodologies for data collection and analysis have obstructed a unified view of national health spending. This has resulted in the misallocation of resources and created systemic inefficiencies that are passed on to health care consumers – individuals, families and communities.
In 2023 Indonesia’s total health expenditure (THE) hit Rp 614.5 trillion (US$ 375.5 billion). Public financing accounted for 57.4% of THE. Out-of-pocket (OOP) spending stood at 28.6% – a reduction from 30.6% the previous year, however still relatively high. Significantly, primary health care (PHC) spending rose by 18.3% compared to pre-pandemic levels, resulting in expanded access to essential health services.
With per capita health spending in 2023 at Rp 2.2 million (US$ 144.7), the data highlight both progress and the need for improvement, including in overall government health expenditure, which remains relatively low, at 2.9% of GDP.
To address these challenges, throughout 2024 WHO facilitated a series of workshops – including a WHO Country Mission – with participants from multiple sectors that aimed to improve Indonesia’s National Health Accounts and transform them into actionable tools for policy makers. As part of these efforts, and in partnership with MoH, WHO supported the analysis of fund allocations, with a focus on refining methodologies for tracking PHC spending, pharmaceutical expenditure and disease-specific accounts.
Discussions also addressed the need to improve OOP tracking and incorporate rehabilitation services into health accounts, reinforcing the role of data as a cornerstone of evidence-based policy making. Key insights from the workshops, technical discussions and WHO Country Mission are now shaping investments in preventive and curative care and the country’s overall Health Transformation Agenda.
“This collaboration exemplifies the importance of data-driven decision-making in health financing,” said Dr Donald Pardede, former Senior Advisor to the Minister of Health, Mr Budi Gunadi Sadikin. “Accurate tracking of health expenditure is vital to optimize resource allocations and achieve UHC.”
Indonesia’s submission in 2024 of annual health expenditure to the WHO Global Health Expenditure Database, which tracks a series of key metrics, will help benchmark the country’s progress and align it with global standards, which Indonesia is increasingly helping to define. At the 19th WHO-OECD Annual Meeting of Asia-Pacific Health Accounts Experts in Kuala Lumpur, Malaysia, Indonesia was lauded for its progress in reducing OOP expenditure, expanding health insurance coverage and better integrating health accounts into national planning frameworks.
“Health expenditure tracking isn’t just about crunching numbers. It’s about transforming lives,” said Professor Roderick Salenga, Team Lead, Health Systems, WHO Indonesia. “By enhancing transparency and accountability, these efforts ensure public resources are effectively deployed to reduce OOP spending and expand access to essential health services. Every step forward strengthens the national agenda of achieving UHC, reinforcing Indonesia and WHO’s pledge to leave no one behind.”
In the months ahead, Indonesia aims to integrate private sector data into its health expenditure framework and enhance interoperability across national and subnational data systems. These advances will be crucial for developing robust, long-term policies that safeguard financial protection and ensure sustainable health financing for all Indonesians.
Written by Feby Oldfisra, National Professional Officer (Health Financing), WHO Indonesia