The politics of funding universal healthcare: Diverting local tobacco taxes to subsidise the national health scheme in Indonesia

Abstract In Indonesia, the national universal health coverage scheme (Jaminan Kesehatan Nasional [JKN]) has consistently overspent against its budget since it was introduced in 2014. In 2017, a new regulation diverted 37.5% of tobacco tax revenue collected at the district and city level to the centr...

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Main Authors: Abdillah Ahsan, Elisabeth Kramer, Nadhila Adani, Askar Muhammad, Nadira Amalia
Format: Article
Language:English
Published: Wiley 2021-09-01
Series:Asia & the Pacific Policy Studies
Subjects:
Online Access:https://doi.org/10.1002/app5.334
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author Abdillah Ahsan
Elisabeth Kramer
Nadhila Adani
Askar Muhammad
Nadira Amalia
author_facet Abdillah Ahsan
Elisabeth Kramer
Nadhila Adani
Askar Muhammad
Nadira Amalia
author_sort Abdillah Ahsan
collection DOAJ
description Abstract In Indonesia, the national universal health coverage scheme (Jaminan Kesehatan Nasional [JKN]) has consistently overspent against its budget since it was introduced in 2014. In 2017, a new regulation diverted 37.5% of tobacco tax revenue collected at the district and city level to the central government in order to increase government contributions to the JKN. Through a review of policy documents and interviews and focus group discussions with relevant stakeholders, this article explores the history of the JKN and its relationship to local tobacco taxes. Offering an ex‐post assessment of the policy and its implementation, we find it negative on three fronts: funding for local anti‐smoking initiatives and services was cut, the procedures for implementing the policy were complex and time‐consuming, and it did not contribute as much as anticipated to the JKN. These findings underscore potential pitfalls of politically motivated policy that fails to consider implementation and impact. We recommend that the policy be revoked, and local tobacco tax revenue reallocated to its initial purpose, which includes promoting local smoking prevention programs and health service delivery.
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spelling doaj.art-6f71a70bf2ab46d7bcbd5deae35ef14d2022-12-21T23:34:48ZengWileyAsia & the Pacific Policy Studies2050-26802021-09-018335136610.1002/app5.334The politics of funding universal healthcare: Diverting local tobacco taxes to subsidise the national health scheme in IndonesiaAbdillah Ahsan0Elisabeth Kramer1Nadhila Adani2Askar Muhammad3Nadira Amalia4Faculty of Economics and Business University of Indonesia Jakarta IndonesiaSydney Southeast Asia Centre University of Sydney Sydney New South Wales AustraliaFaculty of Economics and Business University of Indonesia Jakarta IndonesiaFaculty of Economics and Business University of Indonesia Jakarta IndonesiaFaculty of Economics and Business University of Indonesia Jakarta IndonesiaAbstract In Indonesia, the national universal health coverage scheme (Jaminan Kesehatan Nasional [JKN]) has consistently overspent against its budget since it was introduced in 2014. In 2017, a new regulation diverted 37.5% of tobacco tax revenue collected at the district and city level to the central government in order to increase government contributions to the JKN. Through a review of policy documents and interviews and focus group discussions with relevant stakeholders, this article explores the history of the JKN and its relationship to local tobacco taxes. Offering an ex‐post assessment of the policy and its implementation, we find it negative on three fronts: funding for local anti‐smoking initiatives and services was cut, the procedures for implementing the policy were complex and time‐consuming, and it did not contribute as much as anticipated to the JKN. These findings underscore potential pitfalls of politically motivated policy that fails to consider implementation and impact. We recommend that the policy be revoked, and local tobacco tax revenue reallocated to its initial purpose, which includes promoting local smoking prevention programs and health service delivery.https://doi.org/10.1002/app5.334governmenthealth policyIndonesiatobaccouniversal healthcare
spellingShingle Abdillah Ahsan
Elisabeth Kramer
Nadhila Adani
Askar Muhammad
Nadira Amalia
The politics of funding universal healthcare: Diverting local tobacco taxes to subsidise the national health scheme in Indonesia
Asia & the Pacific Policy Studies
government
health policy
Indonesia
tobacco
universal healthcare
title The politics of funding universal healthcare: Diverting local tobacco taxes to subsidise the national health scheme in Indonesia
title_full The politics of funding universal healthcare: Diverting local tobacco taxes to subsidise the national health scheme in Indonesia
title_fullStr The politics of funding universal healthcare: Diverting local tobacco taxes to subsidise the national health scheme in Indonesia
title_full_unstemmed The politics of funding universal healthcare: Diverting local tobacco taxes to subsidise the national health scheme in Indonesia
title_short The politics of funding universal healthcare: Diverting local tobacco taxes to subsidise the national health scheme in Indonesia
title_sort politics of funding universal healthcare diverting local tobacco taxes to subsidise the national health scheme in indonesia
topic government
health policy
Indonesia
tobacco
universal healthcare
url https://doi.org/10.1002/app5.334
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