Market Intelligence
Healthcare Indonesia

Indonesia Healthcare Law

The Government officially issued Law Number 17 Year 2023 on Health (Law No. 17/2023), which came into force on 8 August 2023. The new Law No.17/2023 (Health Law) holds monumental implications for the development and transformation of Indonesia’s healthcare system. The Indonesian House of Representatives approved the Bill on Health during its 29th Plenary meeting on 11 July 2023, despite challenges and objections from some medical practitioners.
 
The new Health Law is issued in the context of increasing health capacity and resilience, building quality and productive human resources, reducing disparities, strengthening quality health services, guaranteeing a healthy life, as well as promoting the welfare of all citizens and the nation’s competitiveness for the achievement of national development goals. 
 
The following are some of the fundamental changes: 
 
Telemedicine Practice in Indonesia
The Health Law provides legal certainty on the practice of telemedicine services offered directly between Health Service Facilities and the general public. This pivotal development empowers licensed medical practitioners and professionals to seamlessly extend medical care and health consulting services directly to the public through authorized Health Service Facilities. The Health Law mandates that further detailed provisions about telemedicine services will be specified by related ministries in implementing regulations of the Health Law.
 
Professional Overseas Graduates and Foreign Professionals
Previously, the regulations governing the practice of professional overseas graduates and foreign medical practitioners in Indonesia needed to be revised. Furthermore, in practice, passing the evaluations and obtaining the necessary license was a very long and complicated process for them. The Health Law now introduces regulations on the eligibility for professional overseas graduates and foreign professionals to practice in Indonesia, providing essential requirements and facilitating ease in their licensing process. With these changes, the Government intends to address the staffing shortages of medical professionals in Indonesia, improve the quality of health services, and reduce the high number of Indonesians seeking medical services abroad.
 
Other Key Changes
The Health Law also provides other critical changes concerning healthcare funding, healthcare practice licensing, professional healthcare organizations and councils, product and substance restrictions, and updated criminal sanctions.
 
The Health Law revokes and supersedes 11 regulations, including the law on Hospitals, Medical Practice, Health Workers, Nursing, and Medical Education. The promulgation of the Health Law also means introducing and implementing regulations that encompass government regulations, presidential regulations, and the Minister of Health regulations.
The Government intends to accelerate this process to support the healthcare system and boost the new law’s effectiveness. However, medical practitioners or relevant stakeholders will likely challenge the Health Law at the Constitutional Court.
 
The Government mandates the stipulation of implementing Law No. 17/2023 regulations by one year from 8 August 2023.

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