Indonesian Residents Spend Rp 175 Trillion from Personal Funds on Healthcare

The Executive Head of Insurance, Guarantee, and Pension Fund Supervision at the Financial Services Authority (OJK), Ogi Prastomiyono, revealed that 28.8% of total healthcare spending is still financed from individuals’ personal funds. This amount reaches Rp 175 trillion.

According to Ogi, the high healthcare costs sourced from personal pockets are due to many residents not yet utilising health insurance products.

“Society that has not used products for health programmes, whether BPJS or commercial health insurance, is still quite large. There are 28.8% of total healthcare spending paid with their own money or termed as out-of-pocket, amounting to Rp 175 trillion,” he said to reporters at The Ritz-Carlton, Jakarta, on Monday, 13 April 2026.

Ogi stated that OJK is coordinating with the Ministry of Health to reduce this figure. On the other hand, he mentioned that the portion financed by commercial insurance only reaches 5% of total healthcare spending.

OJK hopes that more people will switch to commercial health insurance so they no longer use personal funds for treatment. “Of course, they will see the pros and cons, how the process is more efficient, better, and so on,” he said.

The Indonesian Life Insurance Association (AAJI) recorded total claims paid in 2025 reaching Rp 146.73 trillion to around 9.59 million beneficiaries. The value of these claims decreased by 7.8% compared to 2024, influenced by a roughly 19% drop in surrender value claims.

Meanwhile, health insurance claim payments increased by 9.1% with a total value of Rp 26.74 trillion, both for individual and group products. “Health insurance is one of the focuses of the life insurance industry’s transformation in 2026. Through the implementation of POJK Number 36 of 2025, it is hoped that health claim management can become more controlled while increasing protection for policyholders,” said AAJI’s Head of Training and Human Resource Development, Handojo Gunawan Kusuma, in a press release on 13 March 2026.