Analysing the Future of the Insurance Industry Amid High Medical Inflation

Jakarta, CNBC Indonesia - Indonesia’s health insurance industry faces structural pressures from high medical inflation trends, rising premiums, and increased healthcare service utilization. This presents a challenge for industry players to ensure sustainable financing while maintaining access to quality and affordable services.

According to the Indonesia Health Benefits Study 2025, medical inflation in Indonesia has reached approximately 17.9%, the highest in Asia. This has prompted health insurance providers to adjust risk management strategies and product designs to sustain premiums and healthcare financing.

Regulatory dynamics, healthcare cost pressures, and shifting service usage patterns indicate that health insurance challenges are systemic and require collaboration between regulators, the insurance industry, healthcare providers, and corporate users.

To address these dynamics, the Financial Services Authority (OJK) has issued OJK Regulation No. 36 of 2025 to strengthen the health insurance ecosystem through improved risk management, co-payment implementation, utilization review mechanisms, and enhanced consumer protection.

CNBC Indonesia will host the Health Insurance Ecosystem Forum 2026 on June 3, 2026, featuring Ogi Prastomiyono, Executive Head of Insurance, Guarantee, and Pension Supervision and OJK Commissioner, and Muhammad Misbakhun, Chairman of DPR Commission XI.

Panel discussions will also include Iing Ichsan Hanafi, Chairman of the Indonesian Private Hospital Association, Yulius Bhayangkara, Chairman of the Indonesian Insurance Council, and other key healthcare industry figures.