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Does Indonesian National Health Insurance serve a potential for improving health equity in favour of workers in informal economy?

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  • Kartika, Dwintha Maya

Abstract

This study examines whether Indonesian national health insurance system promotes health equity in favour of informal economy workers. It first lays out the theoretical justification on the need of social protection, particularly health protection for informal workers. The paper argues that the absence of health protection for vulnerable informal workers in Indonesia has reinforced health inequity between formal and informal workers, thus provides a justification on extending health protection to this segment. It then boils down its analysis on existing BPJS Health scheme, a government-run national health insurance, and to what extent this scheme serves the needs of informal workers in Indonesia. The finding suggests that several factors (contributory premium, access to healthcare services and politicisation of national healthcare) are responsible for adversely incorporating informal workers; hence fail to promote health equity in favour of vulnerable workers in informal economy.

Suggested Citation

  • Kartika, Dwintha Maya, 2015. "Does Indonesian National Health Insurance serve a potential for improving health equity in favour of workers in informal economy?," MPRA Paper 72054, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:72054
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    References listed on IDEAS

    as
    1. Sparrow, Robert & Suryahadi, Asep & Widyanti, Wenefrida, 2013. "Social health insurance for the poor: Targeting and impact of Indonesia's Askeskin programme," Social Science & Medicine, Elsevier, vol. 96(C), pages 264-271.
    2. Ricardo Bitran, 2014. "Universal Health Coverage and the Challenge of Informal Employment: Lessons from Developing Countries," Health, Nutrition and Population (HNP) Discussion Paper Series 87077, The World Bank.
    3. Morduch, Jonathan, 1999. "Between the State and the Market: Can Informal Insurance Patch the Safety Net?," The World Bank Research Observer, World Bank, vol. 14(2), pages 187-207, August.
    4. Aloysius Gunadi BRATA, 2010. "Vulnerability Of Urban Informal Sector: Street Vendors In Yogyakarta, Indonesia," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 5(5(14)), pages 47-58, February.
    5. Agyepong, Irene Akua & Nagai, Richard A., 2011. ""We charge them; otherwise we cannot run the hospital" front line workers, clients and health financing policy implementation gaps in Ghana," Health Policy, Elsevier, vol. 99(3), pages 226-233, March.
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    More about this item

    Keywords

    National Health Insurance; Informal Economy; Universal Health Coverage; Indonesia; Informal workers; Health financing; Social Security; Social Protection; WHO; ILO; BPJS;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • I1 - Health, Education, and Welfare - - Health
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O29 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Other
    • Y40 - Miscellaneous Categories - - Dissertations - - - Dissertations

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