Improving Indonesia's Health Services in the ASEAN Community Era: Implications of the ASEAN Economic Community (AEC)

Team Member: Rika Kumala Dewi, Michelle Andrina, Nurmala Selly Saputri
Completion Year:
Jawa Tengah, Jawa Barat, Bali

Collaborating Partners

Funding body:

Ministry of National Development Planning/Bappenas.


Description & Progress


The AEC, which commenced at the end of 2015, presents both opportunities and threats to access to and the quality of the Indonesian healthcare services, through the harmonization of regulations and the freer flow of goods, services, and investments. The strengths and weaknesses of the Indonesian healthcare system, combined with government policy responses, will determine Indonesia’s success in taking advantage of the opportunities and avoiding the threats.

This study aims to analyze the strengths and weaknesses of the Indonesian healthcare system; identify AEC’s implications for five health service elements, including health workers, pharmacy, health devices, healthcare facilities, and traditional medicine and health services; and provide government policy recommendations so that Indonesia can exploit the opportunities and anticipate the threats.


Methodology and Data

The study uses qualitative data collection methods, including semi-structure interviews and focus group discussions with relevant stakeholders. In addition, a literature review was conducted by examining relevant documents, including ASEAN agreements, laws and regulations, policy packages, and relevant publications. The analysis also utilizes secondary data on health sectors in Indonesia and other ASEAN member countries. The study started in Mei 2016, and comprehensive data had been collected by the end of September 2016.


Research Area

Three provinces were chosen as the research locations based on specific issues to be investigated: Central Java as a large producer of jamu (traditional herbal medicine), West Java as a region where many medical devices and pharmaceutical industries are operational, and Bali as an international tourist destination that offers great potential for health tourism.



The draft report had been submitted to Bappenas by the end of November 2016. The final report is expected to be completed in February 2017.

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