Jakarta. Indonesia will inject an additional Rp20 trillion ($1.2 billion) into the country’s national health insurance system to strengthen the finances of state-run health insurer BPJS Kesehatan, Finance Minister Suahasil Nazara said Wednesday.

The additional funding will be disbursed in stages in October and November 2026 and is intended to support the sustainability of the National Health Insurance (JKN) program, which provides health coverage to hundreds of millions of Indonesians.

Suahasil said the additional allocation is separate from funding already provided for 96.8 million people whose insurance premiums are paid by the government.

“We reported to the president that the state budget includes an additional injection of Rp20 trillion for health insurance,” Suahasil told reporters at the presidential palace.

The injection comes as BPJS Kesehatan faces a cash-flow gap driven by rising healthcare costs, particularly for catastrophic diseases, and medical inflation.

BPJS Kesehatan had 284.5 million registered participants as of September 2026, according to government data. However, about 52 million participants were classified as inactive because they were not paying their premiums.

From January through September, BPJS Kesehatan collected about Rp118 trillion in premium contributions, while benefit payments for healthcare claims reached Rp132 trillion. The resulting cash-flow deficit was about Rp14 trillion, with officials attributing the gap largely to rising costs from catastrophic diseases and medical inflation.

The government’s Rp20 trillion injection is expected to help cover the insurer’s finances and maintain the continuity of JKN coverage.

Suahasil described BPJS Kesehatan as one of the world’s largest social health insurance programs, with about 285 million registered participants and an active participation rate of 80.6%.

Indonesia introduced JKN in 2014 in an effort to provide universal health coverage through a social insurance system. The government subsidizes premiums for low-income and vulnerable households, while other participants are generally required to pay monthly contributions.

Suahasil urged participants to keep their premium payments up to date, saying the system depends on contributions from healthy members to help finance treatment for those who become ill.

“We want all members of society to actively pay their contributions. That creates mutual support — those who are healthy contribute so that those who become sick can be covered,” he said.

The government also wants to improve premium collection and ensure that subsidies reach the intended recipients, Suahasil said.

He said the government would use the Integrated Social Welfare Data (DTKS) to improve the targeting of premium assistance.

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