Indonesian Political, Business & Finance News

Cak Imin Agrees to BPJS Kesehatan Premium Increase

| Source: TEMPO_ID Translated from Indonesian | Social Policy

Coordinating Minister for Community Empowerment Muhaimin Iskandar, commonly known as Cak Imin, has agreed to an immediate increase in national health insurance premiums. The proposal to raise BPJS Kesehatan contributions was previously put forward by Health Minister Budi Gunadi Sadikin during a press conference on the Optimisation of the National Health Insurance Programme in Jakarta on Monday, 23 February 2026.

Cak Imin said he had previously been among those opposed to increasing BPJS Kesehatan premiums. On several occasions, he admitted to having frequently rejected such proposals.

However, this time he has agreed to raise BPJS premiums starting in 2026. “Whether it’s because of Ramadan or something else, I agree with everything the Health Minister has presented,” he said during the press conference, which was broadcast online on Monday.

The chairman of the National Awakening Party (PKB) said the premium increase could serve as an initial step towards transforming healthcare services whilst also repairing the BPJS financial system, which has long been plagued by deficits.

Moreover, he argued, the increase in health insurance premiums would only directly affect wealthier segments of society — those in deciles 7 to 10 according to the National Socio-Economic Unified Database (DTSEN) rankings. “For those at the bottom, their premiums are already paid from the state budget, so however much they rise, it really isn’t a problem,” he said.

Earlier in the same forum, Minister Budi stated that health insurance premiums must be raised promptly as the BPJS Kesehatan deficit continues to widen. In 2025, the BPJS Kesehatan deficit was reported to have exceeded Rp 20 trillion.

“What does that mean? Premiums must go up. It is impossible for BPJS premiums not to be adjusted every five years,” he said.

Minister Budi outlined two reasons why the BPJS Kesehatan premium increase is necessary. First, healthcare costs rise every year due to inflation. Without premium adjustments, inflation will place an ever-greater burden on the national healthcare system. According to data presented by Budi, three years ago national health insurance costs stood at Rp 158 trillion, rising to Rp 175 trillion in 2024 and Rp 190 trillion in 2025.

If BPJS Kesehatan premiums are not increased, Budi predicted that within five years the state will no longer be able to fund healthcare for the Indonesian public. “Not during my tenure, but under the minister who comes after me. I guarantee BPJS will not survive. It simply will not have enough money to maintain the health of the public,” he said.

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