The Indonesian national health insurance programme (JKN) finally officially started on January 1, 2014. In the first phase, it will cover 121.6 million participants. The programme is managed by the social security manage-ment agency BPJS Health, and is mandatory for Indonesians and foreigners living in Indonesia for over six months.

Under Presidential Decree No 111, large, medium and small companies must participate as of January 1, 2015 in the national health insurance programme. Participation by all Indonesians is expected by the latest as of January 1, 2019.

The existence of BPJS Health is having a huge impact on the health insurance market in Indonesia. Previously, each company could allocate its health insurance budget to one private insurer. From now onwards that it is mandatory for all employers to join the BPJS Health programme. In addition, some employers may cease their private insurance plans since their basic health insurance needs will be covered by BPJS Health.

Nevertheless, private medical insurers also see a huge opportunity of the set up of the BPJS Health. Its launch is positive for the growth of the health insurance market, as it is helping to educate the public on the importance of health insurance. People will now be looking to purchase extra services and additional insurance policies for this.