Medical Inflation Reaches 17.8 Percent, Are the Public Ready to Face Unexpected Costs?
The Indonesian public faces a financial resilience challenge amid rising healthcare costs. Medical inflation in Indonesia is projected to reach 17.8 percent in 2026, far above the general inflation projection of 2.5 percent. This projection is contained in Health Trends 2026 published by Mercer Marsh Benefits. Based on the report, the rate of medical cost increases in Indonesia is also higher than the Asian average, which is projected at 12.5 percent in 2026.
Rising healthcare costs can become an additional burden on people’s financial conditions, especially when they have to deal with unplanned medical needs. This risk is increasingly important because the public’s ability to cope with unexpected expenses remains limited. Findings from Prudential plc’s Financial Wellbeing Index show only about 45 percent of respondents in Indonesia are confident they can handle unexpected expenses or have sufficient savings for the future. This condition shows that financial resilience remains a challenge, including in facing health risks.
Pressure on family finances is also visible from the rising cost of a number of medical procedures. Based on internal health claims data from Prudential Indonesia and Indonesian insurance industry reports, treatment costs for a number of procedure types and hospital classes increased from 2023 to 2026. VIP room rates, for example, increased from around Rp1.5 million in 2023 to Rp2.35 million in 2026. Increases also occurred in the cost of a number of medical procedures. Neurology treatment costs for the same procedure type and hospital class increased by nearly 300 percent, from around Rp55.2 million to Rp220.6 million. Meanwhile, cancer treatment costs increased by more than 236 percent, from around Rp81.3 million to Rp273.8 million.
This increase shows that health risks are not only related to physical condition, but can also put significant pressure on a person’s or family’s financial condition. Therefore, financial preparedness needs to be built by taking into account current needs as well as possible future risks. Chief Health Officer of Prudential Indonesia, Yosie William Iroth, said financial preparedness is a process that needs to be built and evaluated continuously. Changes in life and economic conditions can affect a person’s needs, so financial condition and protection need to be understood regularly.
According to him, understanding one’s financial condition can help people make decisions that suit their respective financial needs and goals. Assistance from Agency Business Partners can also help customers understand their protection needs and available options according to their financial condition. Evaluating protection is also important when changes occur in life, such as changes in employment, income, family needs, or health conditions. This way, the protection owned can remain adjusted to needs and financial capability.
Prudential Indonesia also recorded paying claims and benefits amounting to Rp4.4 trillion to 161,194 beneficiaries in the first quarter of 2026. The payment covers various protection benefits provided to customers and beneficiaries. Amid rising healthcare costs, readiness to face risk is an important part of maintaining family financial resilience. The public not only needs to pay attention to the ability to meet current needs, but also to take into account future health needs and financial risks that may arise.