Indonesia Health Care Tips

Whether you come from an American like system of high quality private health care or the Canadian and European public health model you will find the Health care system in Indonesia very different from what you are used to. Having worked for a number of years in Indonesia providing health insurance for expats I have some unique local knowledge based on firsthand experience as well as problems I have seen my clients deal with. I hope that you will find this guide informative and that your stay is a happy and healthy one. But if you fall ill or are injured this guide should help you avoid a lot of misery and may even save your life.

Make Sure You Have Adequate Health Insurance. 

If you find yourself needing treatment for a serious illness or injury you will need adequate health insurance. Be sure that your policy allows for Emergency Medical Evacuation.  You do not want to bet you or your family’s life on the vagaries of local health care providers. When you purchase your cover make sure it is from a reputable Financial Adviser or Insurance Broker who has specific local knowledge about which insurance companies will be more likely to evacuate you to somewhere you can receive adequate medical treatment. If you purchase Medical Insurance in your home country your adviser is unlikely to know this.

If It's an Emergency Don't Wait For An Ambulance.

Anyone who has driven for sometime in Indonesia will notice that local people do not make way for ambulances even if they are using their lights and sirens. In Indonesia ambulances are primarily for transporting dead people, so unless you are already dead, you would be better off making your way on your own to the nearest hospital rather than waiting for an ambulance. The so called "Golden Hour" that emergency medical people talk about would be better spent in a clinic or hospital rather than in an ambulance stuck in a traffic jam.

Just Because The Doctor Has A Diploma Does Not Mean He Is Competent.

Like many other facets of Indonesian life, the education system is rife with corrupt practices. Many people have been granted advanced degrees based more on the kind of bribes they where willing to pay and not their exam results. While there are a number of very competent local doctors there are also a number very dangerous quacks practicing medicine. You need to be sure that the Doctor who is treating you or your family knows what he is doing. The only way to ensure this is by always seeking treatment at a reputable institution that makes sure its staff are competent. At the bottom of this Guide you will find a list of the Health Care providers I would recommend.

Treatment Quality Depends on The Cost.

Health Care quality does not just vary from Hospital to Hospital, but also varies by the class of treatment sought. It ranges from category 3 in which the staff will change IV's and administer basic medicine, but not change sheets or assist patients to the toilet all the way to VVIP where your surroundings and service will be more akin to a five star hotel than what you would expect in a Hospital. So it is important to make sure that your Insurance will provide the level of cover you would expect.

Be Careful About Complaining About Poor Treatment.

In a recent highly publicized case a patient is being tried for Defamation because she complained that the Hospital Staff where incompetent and her illness was misdiagnosed. It is far better to make sure you only deal with competent Medical Providers rather than deal with the health and legal ramifications of dealing with some of the less reputable institutions.

Summary

It is important that you have adequate Medical Insurance, the only people who have the unique local knowledge about which Health Insurance plan among the hundreds available will meet your needs and expectation are local Financial Advisers and Insurance Brokers. Make sure that your policy will cover Emergency Medical Evacuation, if it doesn't it may cost you or a family member their life.

Recommended Providers

Clinics

 

SOS Medika – Cipete                 SOS Medika – Kuningan           SOS Medika - Bali

Jl Puri Sakti No 10                           Menara Prima, 2^nd Floor                Jl By Pass Nugrah Rai 505 X

Cipete, Jakarta Seletan                  Jl Lingkar Mega Kuningan              Kuta, Bali

Tel. +62 21 750 5973                    Tel. +62 21 5794 8600                    Tel. +62 361 720 100

Fax. + 62 21 750 6002                 Fax. + 62 21 5794 8686                  Fax. +62 361 710 515

 

Global Doctors – Kemang    Global Doctors – Kuningan   Medikaloka Health Care

Jl Kemang Raya No 87                  Taman Kantor A9 No A3A              Graha Irama

Kemang, Jakarta                              Kuningan, Jakarta                              Jl HR Rasuna Said

Tel. +62 21 719 5448                     Tel + 62 21 576 2869                       Tel + 62 21 526 2122

Fax. + 62 21 719 8969                   Fax. + 62 21 5793 3421                  Fax. + 62 21 526 1119

 

Hospitals

 

Medistra Hospital                      MMC Hospital                                 RS Pondok Indah           

Jl. Jendral Gatot Subroto             Jl HR Rasuna Said Kav C-21           Jl Metro Duta Kav UE

Jakarta                                                 Jakarta                                                    Pondok Indah, Jakarta

Tel: +62-21 521 0200                   Tel: +62 21 520 3435                        Tel: +62-21 765 7525

Fax: +62-21 521 0184                   Fax: +62-21 520-3417                     Emergency. +62-21 750 2322

 

Tax Reformasi

In an effort to increase revenue and broaden the tax base the Government of Indonesia is proposing a number of reforms. When the House of Representatives returns from its recess it will be asked to vote on a reform bill that includes:

• The top corporate rate being cut to 28% in 2009 and 25% in 2010.

• For public companies rates would be 23% in 2009 and 20% in 2010.

• Companies with below 50 Billion in revenue would see rates fall to 14% in 2009 and 12.5% in 2010.

• Maximum dividend tax rate cut to 10% from the current 20%.

The government hopes to increase its collection of tax by making the tax rates more competitive with its neighbors such as Singapore. Currently government tax revenue amounts to Rp 580 Trillion which is 11.4% of GDP. Though the reforms proposed could see a Rp 40 Trillion fall in tax revenue, the government expects to see revenue rise in 2009 to Rp 702 Trillion, through greater tax compliance from the lowering of the tax rates. The biggest barrier is corruption by the tax department which typically sees bribes of 40% of the tax owed being paid tax department officials.

Another measure in the reform package that may help broaden the tax base is the gradual phasing out of the hated Fiscal Tax. Currently all Indonesian nationals and all foreigners working in Indonesia are required to pay a 1 Million Rp Fiscal Tax every time they leave the country. In theory you are able to claim this back when you file your taxes but in practice most people do not seek the refund as it is a sure method to bring about a tax audit and the subsequent bribes that will need to be paid.

As proposed in the bill, the Fiscal Tax will be eliminated for all registered taxpayers in 2009 and for everyone else in 2011. This measure, along with fines of 20% of the tax owed for people who do not register as taxpayers by the end of this year, is expected to increase the appeal of registering and broaden the tax base. Indonesia, a country of 225 million people has its budget supported by only 6 million registered taxpayers of whom only 2 million actually pay their taxes. The reforms are expected to increase the tax base to 10 million people by 2010.

Also in Indonesia.

In an effort to deal with growing inflationary pressure, Bank Indonesia has raised its policy rate by 25 basis points to 9%. This increase is part of continued rate rise that have seen the benchmark rate rise a full percentage point since may this year.

These efforts are to combat inflation which was reported as a rise in consumer prices by 11.9% in July. Food costs alone are running at 19.9%, the most in a decade.

Producer costs as measured by wholesale price inflation was running at 34.7% in June which suggest that there is greater inflationary pressure that has yet to work its way through the system. This could push inflation by the end of the year above the government’s 12.7% forecast for this year.

This rate rise would have been greater if the central bank had not benefited from the rise in the value of the Rupiah. In the last 10 months the Rupiah has been the second best performing of the major Asian currencies. The central bank hopes to get inflation under control and forecasts inflation at 6.5% to 7.5% in 2009.