The Crisis in Indonesia

The receding economic tide in Indonesia has left many people stranded without healthcare of any kind. The combination of the economic crisis and two years of drought has left the Indonesian people without any social safety net. Much of what impacts the ability of the government to provide adequate healthcare for its people are things that are not strictly healthcare related. Specifically, domestic budgets have fallen precipitously while costs have soared across the board. Meanwhile, the healthcare system hemorrhages.The drought in Indonesia has caused the widely publicized brush fires. The relentless effects of the fires have caused a severe healthcare crisis of it’s own in the poorer provinces where healthcare standards are significantly below those of Java’s. Many people living in the cities have lost their jobs. . Nearly half of the nation’s population is now below the poverty line.For instance, in and around Jakarta, those who previously could not pay and expected free service from the public health system has grown from 10%to 40% and continues to rise. This of course is playing havoc with the government health budget.The Rising Cost of Healthcare: In Jakarta and throughout Java, medicine and medical supplies are still generally available for the health system facilities and for the public. What used to cost $2.00 is now costs $6.00 or more. Yet the number of people that can afford to pay for them is declining rapidly.The reason for the sharp increase in price to the consumer is that the medical system is highly dependent on imported products. Nearly 89% of the cost of health care is imported. This includes the costs of medicine, of which a considerable amount is manufactured in Indonesia but nearly all the ingredients are imported. Nearly all medical disposable items, such as syringes, reagents, and x-ray film, etc. are imported. The domestic pharmaceutical industry can no longer import raw materials, as they have been unable to obtain letters of credit.

Mariam Ahmad