Health Ministry Reveals Health Industry's Contribution to the Economy

Health Minister Budi Gunadi Sadikin has revealed that the health industry can help achieve the national economic growth target of 8%. This is because the health sector has recorded growth of 9% to 11% over the last 10 years. “I look at health data, and over the last 10 years it has grown 9%-11%. This is what must be pushed. This is our GDP,” he stated during CNBC Indonesia’s Economic Update 2026 on Wednesday (24/6/2026). Budi explained that the health sector contributes to Gross Domestic Product (GDP) and job creation. For GDP, he said every Rp 1 invested in the health sector has the potential to generate Rp 3.2. “So if we want to grow 1%, we need an additional US$ 15 billion in GDP. If our GDP multiplier is 1 to 3.2, it means to generate 15 billion GDP, we only need to invest US$ 5 billion,” Budi clarified. In terms of job creation, the health sector absorbs around 1.5 million workers per year, with the annual share increasing by 50,000 to 100,000. “The job multiplier for these 50,000 to 100,000 people, which we saw previously, is around 1.5 million,” he added. Budi gave the example that when a hospital service opens a health facility, it will require 1,000 workers. However, that health facility also needs additional workers for security guards, drivers, medicine couriers, and so on. “So I see that if the health industry is properly developed, it not only produces resilience for national health but also helps create GDP growth, which can be above 8% as the President desires, and also helps create jobs,” he asserted. The health sector also brings investment growth, including from foreign sources. He cited the Bali International Hospital, which brought an investment value of around Rp 2 trillion. “There is also investment from abroad, from the Swire Group. There is Aspen Medical from Australia, they are also building large hospitals. I forget the figure, many are in the West Java area. Apollo Hospital has also come to us, wanting to cooperate with Mayapada,” he revealed. He added that health sector investment is also being made by domestic companies such as Astra and Djarum to strengthen capital structures, allowing hospital services to expand more widely. “Emtek, for example, has entered Jakarta Eye Center. So the development of the health service industry is extraordinary,” he said. Investment is also occurring in the medical device industry, where domestic manufacturers produce medical devices for the needs of hospitals and Posyandu. “We also decided to buy 10,000 ultrasound devices. That is domestic industry, ultrasound has risen sharply. What is currently hot is that we are buying CT Scanners. For CT Scanners, GE is now entering into a cooperation with Kalbe,” he explained.