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New health bill planned to bring back foreign exchange losses

Source
Jakarta Globe - June 21, 2023

Eva Fitriani, Jakarta – The health bill being discussed by the House of Representatives is partly at recovering foreign exchange losses as many Indonesians have opted to get medical treatment abroad.

Erfen Gustiawan Suwangto, the Secretary General of the Indonesian Medical Association (PDSI), said that the bill will improve access to the health system for all citizens and upgrade medical technologies in the country.

"Once enacted into law, the bill will make it easier for the public to access a wider range of healthcare services, especially primary care and specialist treatment. Hopefully, the Indonesian people will seek medical treatment in their own country," Erfen said on Tuesday.

The bill, for instance, exempts healthcare equipment from luxury goods taxes (PPnBM).

"Other than that there should also be incentives for participants of specialist medical education. Like in other countries, participants [in specialist programs] are paid, not the ones paying," he said.

Ari Fahrial, a professor at the University of Indonesia's Faculty of Medicine, said if healthcare equipment is liable to luxury taxes, it will weaken the domestic healthcare industry's competitiveness.

"That's what makes healthcare in Penang cheaper than the one in Indonesia. Healthcare equipment there is subsidized by the government," he said.

President Jokowi on his Twitter account (@jokowi) last week mentioned that almost a million Indonesians receive medical treatment abroad every year. This results in the loss of foreign exchange reserves amounting to $11.5 billion dollar.

"The quality of Indonesian doctors is as good as their foreign counterparts," the president wrote on his Twitter.

Source: https://jakartaglobe.id/news/new-health-bill-planned-to-bring-back-foreign-exchange-losse

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