Established in 1998, Center for Health Economics and Policy Studies (CHEPS) at the Faculty of Public Health Universitas Indonesia was aimed to fulfill the needs of economics and policy studies in health development and services.
The subject of health economics becomes more important in National Social Security System funding currently exists in Indonesia. It is a true since implementations of Law Number 40/2004 on National since 2014 via introducing a National Health Insurance (JKN) program underlines principles of funding and prospective payment. Globally, the subject of health economics also becomes more prominent issue following global commitment on achieving Universal Health Coverage (UHC).
However, like in many other developing countries, funding source will always be limited and people who need to be covered will demand more to what they need. Poor health financing performance have been observed since long time, with the government remains a true global outlier in terms of low levels of public spending at less than 2 percent of GDP. A low public spender for Health partly due to poor fiscal capacity, with just over 12% of GDP going to the Treasury, and in part due to low prioritization of spending for health compared to other sectors (in the lowest decile in the world as a percentage share). Challenge on JKN program that grapples with financial pressures and global UHC’s policy goals are harder with unsolved old health-related problems including mal-distribution of health facilities and human resources, quality of health care personnel, poor health services, and resource scarcity. Hence health economics study becomes the most cost-effective way to do, and a fair payment to health care personnel becomes a hot issue.
Therefore, CHEPS is trying to share ideas to solve health-related problems and provide real contributions to improve international, national and local health system. Equipping with a team of more than 20 researchers who are in constant demand at conferences across the country and around the world, CHEPS regularly advise governments and policymakers. CHEPS’ projects have informed policy-making decisions in a range of areas, at local, national and International levels. Research carried out in CHEPS looks set to remain central to decisions about where and how increasingly limited budgets are spent. To date, CHEPS is a leading influence on Indonesia health policy, helping shape the way society thinks about health and health care.