Tobacco Taxes Can Help Finance Health Services: Jokowi

   •    19 September 2018 17:09 WIB
health and life (en)
Tobacco Taxes Can Help Finance Health Services: Jokowi
President Joko Widodo (Photo:MI/Susanto)

Jakarta: President Joko "Jokowi" Widodo on Wednesday explained a recent residential regulation that allows the use of regional tobacco excise duty to help address the deficit suffered by the Healthcare Security Provider Body (BPJS Kesehatan).

“The Law has mandated that 50 percent of tobacco excise duty may be used to finance health services,” Cabinet Secretary's official website quoted President Jokowi as saying. 

According to him, the deficit must be tackled as soon as possible. With the new policy, BPJS Kesehatan can continue providing best healthcare services to the public. 

Regarding the accountability aspect, he has instructed the National Government Internal Auditor (BPKP) to audit the deficit. Moreover, he has also the BPJS Kesehatan management to improve their system.

“It is not easy to control and monitor claims from hospitals. It is not easy,” he said,

“It is quite difficult to control and verify all hospitals around the country. Hence, it is necessary to improve the system periodically,” he added.

For the record, based on the Development Finance Comptroller’s recent review, the BPJS Kesehatan’s deficit is estimated to reach Rp 10.99 trillion this year.