Progress and Setback
Health Profile
Communicable diseases
Women and children
The epidemiological transition
Environment
Complex emergencies
Government Policy and Finance
Upcoming Challenges


Progress and Setback

Indonesia is the fourth most populated country in the world, with 300 ethnic groups speaking 350 languages spread over the country's 6,000 inhabited islands.

For 30 years from 1967, Indonesia made remarkable progress. A period of economic growth raised per capita income from US$50 in 1968 to US$ 1,124 in 1996, despite an increase in population from 147 million in 1980 to 179 million in 1990, with a forecast of 210 million in the year 2000. Between 1980-1990 the annual population growth rate was 1.9%, with a Crude Birth Rate of 22.5 per 1000 and a Crude Death Rate of 7.4 per 1000 in 1998. The population pyramid grew towards an older population, with a life expectancy at birth of 64 years for males and 67 years for females (1996). As a consequence of better socio-economic development and improved preventive and curative services, the infant mortality rate declined from 142 per 1000 in 1968 to 50 per 1000 in 1998. The proportion of the population living in poverty dropped from 60% in 1970 to an estimated 11 -13% in 1996. Most of the poor lived in rural areas, in some of the remote islands or upland areas. By 1997 the literacy rate for those aged 10 years or more was 89%.

These achievements received a severe set back in mid-1997 when the Indonesian economy collapsed. The value of the currency plummeted, prices increased, and unemployment rose dramatically. In addition, parts of the country suffered from long droughts and extensive forest fires. This sudden crisis resulted in political turmoil and, in 1998, a change of government. The ensuing political instability has had a direct impact on economic recovery. The proportion of population living in poverty increased from the estimated 11-13 % (1996) to 24.2%(1998).


Health Profile

Although the health status of Indonesians has not been affected drastically in the short term, the economic crisis has certainly slowed development of the health system. The Government of Indonesia is taking special steps to protect the health of its population through the modification of its Seventh Five-Year Plan (Repelita VII), but the pace of progress in solving health problems has been slow. The health status of Indonesia still lags behind neighbouring countries. Maternal mortality in particular is very high at 334 per 100,000 live births (1997). Moreover, national figures mask considerable regional disparities in health indicators. For example, the infant mortality rate ranges from 27 per 1000 live births in Jakarta to 90 in West Nusa Tenggara(1998).


Communicable diseases

Communicable diseases are a major cause of morbidity and mortality in Indonesia. Technical strategies for communicable disease control have already been accepted, adapted to country-specific needs and adopted. However, implementation of these accepted strategies needs to be improved, particularly given the shift to a decentralised health system. Major problems include:

Tuberculosis which is the second highest cause of death and the primary killer among infectious diseases. An estimated 175,000 people die every year from tuberculosis. The DOTS strategy has been expanded to 225 districts (74.8%) out of a total at of 311 districts, covering 88 out of the 210 million people. Case finding is presently only 10% of the expected incident cases.

Leprosy is on the verge of being eliminated. Current efforts focus on final campaigns.

Malaria is still a public health problem. Approximately 1.5 million cases are detected annually. In 1997, the parasite incidence ranged from 0.12 per 1000 population in Java and Bali to around 40 per 1000 population, under 10 years of age, in the outer islands. In 1998, there were malaria outbreaks in the highlands of Irian Jaya and resurgence in Central Java.

Dengue fever/dengue haemorrhagic fever usually occurs in epidemic proportions during the peak season, starting in November and peaking in May. In 1998, 30,000 cases were reported from cities and also from some rural areas.

STDs remain a serious problem, especially in high-risk groups, and promote the spread of HIV/AIDS. Control is complicated by social and cultural attitudes towards these diseases and possible interventions. As of January 1999, the cumulative number of reported AIDS cases was 227, of which 113 AIDS patients had died. The progression rate seems to increase slowly, doubling in more than two years. However, this may be due to under-diagnosis or under-reporting.


Women and children

The health of women and children continues to be a cause of concern. With five million pregnancies every year in Indonesia, more than 20,000 women die annually during pregnancy and delivery. The high number of maternal deaths is a particular problem in rural areas, given limited access to delivery by skilled attendants and an inadequate referral system. Almost 50% of women give birth without skilled attendants and 70% have no postpartum care during the six weeks following delivery. The management of obstetric cases only reaches about 10% of the estimated total.

Many of the traditional childhood infectious diseases have been controlled through immunisation. Polio is close to elimination and current efforts focus on surveillance and final sub national Immunisation Days campaigns. Routine EPI coverage has been maintained above 80% nationally with donor assistance though rates are falling in pocket areas. However, with decentralisation of the health system, renewed efforts will be needed to ensure that immunisation coverage is sustained.

An important objective in Indonesia is to reduce the IMR to less than 50 and the under-five mortality rate to 66 per 1000 live births. One of the strategies is the Integrated Management of Childhood Illness (IMCI) within which special emphasis will be put on the quality of health services and the prevention of illness and appropriate health care seeking behavior at the family and community level.

Malnutrition, especially among mothers and children, will require additional resources for improving breast- feeding practices, complementary feeding and anaemia.


The epidemiological transition

As the life expectancy of Indonesians improves, the concern is shifting from communicable to degenerative diseases. This epidemiological transition has presented the health care delivery system with a double burden. Chronic conditions include cancer, circulatory diseases, metabolic disorders, congenital disorders, tobacco dependence, mental health and neurological disorders. Since these diseases are expensive and difficult to cure, it is appropriate to focus on their prevention, and especially on promoting healthy lifestyles with an emphasis on reducing tobacco dependence. However, although Indonesia has placed high priority on health promotion and prevention over the last two decades, the translation of these priorities into policies and implementation has been fragmented and ineffective.


Environment

Indonesians are increasingly exposed to health risks from environmental hazards. Cases of severe urban air pollution and massive air contamination of ground and surface water resources by industries and households are common. Many potentially harmful chemicals are readily available to the public and are regularly used at places of work in agriculture, industry and commerce. Food contamination of both microbiological and chemical origin is a major issue. The haze from the forest fires in Indonesia has had significant disruptive social and economic effects on people living in affected areas. However, there is little serious commitment to tackle these problems because of complexity of the issues, and a lack of clear responsibilities both in the public and private sectors.


Complex emergencies

In addition Indonesia is currently facing a large number of complex emergencies arising from multiple natural disasters and many areas of civil unrest. Vast displacements of populations - amounting to about 1 million by the end of 2000 -have taken place in West Timor, Malukus, and Aceh provinces.


Government Policy and Finance

Following the change of government, the President in March 1999 proclaimed a new development policy which employs a health-oriented national development approach -"Healthy Indonesia 2010". The new mission of the National Health Development Programme is to lead and initiate health-oriented national development; maintain and enhance the health of individuals, family and community, along with their environments; maintain and enhance good quality, equitable and affordable health services; and promote public self-reliance in achieving good health.

The main focus of the new approach is:

  • decentralisation as the key to health sector reform, in the context of broader political decentralisation
  • an emphasis on health prevention and health promotion, "the Healthy Paradigm", rather than on curative services
  • an effective human resources development programme, to support decentralisation
  • access to quality basic health services through a community managed care approach (JPKM).

A Framework for Health Priorities for Indonesia provides the guidelines for all Ministry of Health and Social Welfare (MoHSW) programmes. Donor assistance will focus on supporting these priority programmes.

The budget system in Indonesia is complicated, highly centralised, inflexible and fragmented. Every administrative level has a local budget, including a budget for health. However, at least 90% of government budget comes directly or indirectly from the central government.

The available budget fails to meet the health needs. Based on the best available data, it is estimated that the total health development budget was 2.4% of the annual national development budget in fiscal year (FY) 1996/97 increasing to 3.0% in FY 1999/2000, or 0.4% of GDP in FY 1996/97 increasing to 1% in FY 1999/2000. Although the government is committed to health as one of its top priorities, preliminary analysis of public expenditures shows a decreasing health budget in real terms, especially for FY 1998/99.

Funds flow into the sector from a variety of sources, the major ones being allocation of government revenues - both central and local government; payments by households (fees for services, drug purchases); employer contribution to health; limited support from NGOs, and foreign loans and grants. In the period 1985-1995, on average only 30% of health care expenditure came from government sources, while 70% came from non-governmental sources, including the organised private sector (employer and insurance) and out-of-pocket health expenditure from households. The distinction between public and private provision of health care is quite blurred in Indonesia, mostly due to the fact that public health professionals also work as private providers during non-working hours.


Upcoming Challenges

Over the next few years, Indonesia will face an important transitional period. After more than 25 years of highly centralised government, Indonesia is undergoing rapid democratisation and decentralisation of political and bureaucratic power. While the course of these political developments is not wholly predictable, it is likely that there will be periods of political instability and resulting adjustments. Furthermore, trends toward increasing democracy are likely to lead to changes in the function of the government itself. Strong political movements towards good governance and reform of the public sector will have major effects in the health sector.

During this period of political change, Indonesia will still be recovering from the economic problems it has faced since the last quarter of 1997. If the political situation stabilises, economic changes are likely to proceed more quickly. Conversely, continuing political uncertainties may hinder recovery and pose the risk of even more severe economic problems. Indonesia is likely to face severe monetary constraints over this period, with little prospect of large increases in public sector expenditure.

The political and economic situation will have an overriding influence on health in Indonesia over the next few years. Decentralisation in particular will have a major impact. Successful programmes that are highly centralised (such as immunisation and drug supplies for health centres) may suffer severe initial setbacks in a decentralised system. Public health activities may not receive adequate funding under a local budgeting system. There are likely to be severe disruptions in the health workforce in the public sector as personnel face sudden changes in their employment. Diseases of the poor - infectious diseases exacerbated by malnutrition, especially tuberculosis and malaria - will remain major issues in Indonesia. Efforts in the last few years have not yielded the expected results. A major part of the problem lies in broader issues of health system development. These include the need for: efforts aimed at greater advocacy for health; effective mechanisms for financing health care; efficient procurement and distribution of essential commodities; the effective delivery of basic services through a wide range of delivery organisations, both public and private; ensuring access to the most vulnerable sections of the population; and rigorous surveillance and monitoring of the results. Development of an integrated approach to these health issues is especially important in the context of the Government of Indonesia's current decentralisation initiative.

Priority issues over the next 5 years will be :

Decentralisation

Decentralisation is a key challenge for the future development of the health sector. In Indonesia, the current move involves all sectors and requires the development of new roles for all levels of government. Precautions are necessary to prevent any adverse effects of decentralisation. Good governance should be the underlying principle.

Equity in healthcare services

The issue of equity is growing in importance. The government has a policy to promote access to health care for the poor and vulnerable groups through the 'Health Card' programme, but it is not working well, and will have to be revisited. In theory Health Card holders are eligible for free care at public facilities but many district governments, especially those in poor districts, are reluctant to provide free services.

Utilisation

At the same time low utilisation of public health facilities is a matter of concern, particularly given the massive investment that has gone into building a vast network of facilities across the country. Some of the reasons for this low utilisation include poor quality of services; limited health insurance coverage; and the blurred distinction between private and public health care. Most health personnel are also private providers after office hours. This creates a conflict of interest which adversely affects the performance of the public health facilities.

Staffing distribution

The geographical distribution of health and health-related professionals is another key issue. Since 1992 central government has had a 'zero growth policy' for civil servants. This restricts the availability of health personnel, especially in remote areas. A MoHSW initiative to counter this - the Contract Programme - has led to uncertainty and demotivation among young doctors. Another major obstacle is the reluctance of health personnel to work in rural areas and difficulties in posting female health workers in the periphery. This will become a key issue in the decentralised health system if health personnel are directly recruited and paid by district governments.

Autonomous hospitals

Launched in 1988, the concept of autonomous hospitals ("swadana") allows hospital managers to retain hospital revenues as an additional means to meet operational costs. Although there is some evidence that this initiative has improved the quality of services, it has not achieved the objective of lowering public subsidies to these hospitals. Also, since fees have usually increased, the ability of the poor to access these services is likely to have been curtailed even further. Such autonomous hospitals need to improve efficiency in the use of funds and facilities. There is also need to take appropriate steps to sustain the private heath sector, in the wake of the economic crisis.

Public/Private Health Services

Services are mainly provided by highly subsidised public facilities. There are about 7600 health centres and 340 hospitals across the country, giving an average of 30,000 population per health centre and one district hospital in every district. In

addition, there are referral hospitals that provide a variety of specialty services in every province. Most public providers also double as private providers after official hours. As a result of the economic growth, there is also a vast growth of private hospitals and clinics across the country especially in big cities. There are 351 private hospitals, most of them owned by social and religious affiliated institutions. Prior to the economic crisis, there was a growing tendency to build 'for profit' hospitals. Despite this development, access to health care is still a major problem because of low coverage of health insurance - only 15% of the population, especially for hospitalisation.

Drug supply

One area where the impact of the 1997 crisis was felt early on is drug supply. Currency devaluation caused prices to rise, which resulted in problems of availability and, even more, of affordability of drugs. Decentralised procurement of drugs, and the tendency of health providers to use drugs irrationally, will continue to be important concerns.




 


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