Health Minister: Healthcare Costs Still Controlled by Supplier Industry
Health Minister Budi Gunadi Sadikin has stated that healthcare costs in Indonesia remain far more expensive than in the United States and Japan. For an appendectomy, for instance, the US healthcare industry requires only USD 12,000 and Japan USD 5,000.
Meanwhile, for the same procedure, the Indonesian healthcare industry must pay up to USD 400,000, equivalent to Rp 6.7 billion. “No other industry has prices that high,” said Budi during a press conference on the Optimisation of National Health Insurance Programme Implementation in Jakarta, broadcast online on Monday, 23 February 2026.
Budi explained that the healthcare business is the only service sector in which there is virtually no bargaining power or negotiation between providers and consumers. Pricing is dominated by the supply side — the healthcare service providers, including medical equipment suppliers and hospitals.
As a result, healthcare costs rise significantly each year. “The inflation keeps going up every year,” said Budi.
According to him, one way for consumers or the public to gain bargaining power is through conventional health insurance, in this case the Social Security Administering Body for Health (BPJS Kesehatan).
However, in Indonesia, Budi said, BPJS Kesehatan’s leverage remains weak, meaning healthcare cost determination is still controlled by medical equipment suppliers and hospitals. “The supply side controls everything. If we want an appendectomy, we cannot negotiate,” he said.
Budi outlined that Indonesia’s total healthcare expenditure currently stands at Rp 640 trillion. To have bargaining power and help push down healthcare service prices, BPJS must be able to cover up to 60 per cent of healthcare recipients — equivalent to paying around Rp 450 trillion.
The remaining Rp 100 trillion would then be covered by private insurance. “So BPJS would be able to negotiate. The price is this much, or for an appendectomy, BPJS could say there’s no need for a CT scan,” said Budi. “So BPJS would represent the public in negotiations.”