Jakarta. Health Minister Budi Gunadi Sadikin announced on Tuesday that the government plans to raise premiums for the state health insurance scheme, BPJS Kesehatan, this year to address escalating healthcare sector inflation.

Speaking during a hearing with the House of Representatives' Commission IX, which oversees healthcare, manpower, and social security, Budi noted that the last premium adjustment occurred five years ago, while healthcare costs have risen by approximately 15 percent annually.

"Prices have increased by 15 percent each year, and the current BPJS funds can no longer bear the load," Budi said.

He assured that the proposed premium hike would not impact low-income families, as the government will continue to subsidize their contributions, allowing them to access benefits at no cost.

"The government will fully cover their costs, including the premium increase, as it is our constitutional duty," Budi affirmed.

Acknowledging that the premium increase may be unpopular and could trigger public backlash, Budi underscored the necessity of the measure due to the current financial strain on BPJS Kesehatan.

"It's not a popular move, but somebody has to say it, or we will face more severe consequences later. With healthcare inflation at 10 percent to 15 percent annually and no premium increase in the past five years, we have no choice but to implement a hike," he explained.

Budi did not specify the exact amount of the proposed increase.

During the same session, BPJS Kesehatan Chairman Abdul Kadir revealed that the agency suffered a deficit of Rp 9.56 trillion ($583.5 million) due to an imbalance between premium income and claim payments. Last year's premium income was Rp 165.34 trillion ($10.09 billion), while claim payments totaled Rp 174.9 trillion ($10.68 billion).

BPJS Kesehatan is one of the world's largest state-run health insurance schemes, covering 278 million members, which represents 98 percent of Indonesia's population.

However, a significant portion of members are inactive, meaning they do not pay the monthly premium. Abdul reported that 55.4 million members have outstanding premium payments.

"The large number of inactive members certainly affects our premium income and contributes to the existing deficit," Abdul noted.

The proposed premium increase aims to ensure the sustainability of BPJS Kesehatan and maintain the quality of healthcare services for all members.