• Indonesia's National Health Insurance Program: Rising Financial Mismatch

    There is a growing mismatch between claims paid and premiums received by Indonesia's Healthcare and Social Security Agency (Badan Penyelenggara Jaminan Sosial, or BPJS Kesehatan). This year the deficit could reach IDR 9.8 trillion (approx. USD $731 million), leading to concern about the financial sustainability of the program and the need to search for additional and innovative ways to fund Indonesia's National Health Insurance (Jaminan Kesehatan Nasional, or JKN) program.

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  • Which Indonesian Banks Are Ready for Lower Net Interest Margin (NIM)?

    In anticipation of the Financial Services Authority's new policy, Indonesian banks categorized under BUKU III claim to be ready for a lower net interest margin (NIM). NIM is the difference between interest income generated by banks and the amount of interest paid out to the lenders. BUKU (Bank Umum Kelompok Usaha) is a categorization system, designed by Bank Indonesia, that divides Indonesian banks into four categories based on the banks' capital. Banks categorized under BUKU III have capital between IDR 5 trillion (approx. USD $373 million) and IDR 30 trillion (approx. USD $2.2 billion).

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  • Big Earthquake off the Coast of Sumatra: Indonesia Issues Tsunami Alert

    A massive earthquake off the west coast of the Indonesian island of Sumatra occurred on Wednesday evening (02/03) in the Indian Ocean. The latest news reports claim the earthquake had a 7.8 magnitude. Its epicenter was around 800 kilometers southwest of Padang, the capital city of West Sumatra. Indonesian authorities quickly issued a tsunami alert. Reportedly, it was a shallow quake, about 10 kilometers deep (shallow earthquakes are more likely to cause damage than deep ones).

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  • Rupiah Indonesia Update: Longest Winning Streak since 2010. Why?

    In line with the overall trend in Asia, the Indonesian rupiah continued to appreciate against the US dollar on Wednesday (02/03). Based on the Bloomberg Dollar Index the rupiah strengthened 0.34 percent to IDR 13,301 per US dollar, touching a four and a halve-month high and recording its longest winning streak since 2010. Over the past ten trading days the rupiah has been appreciating against the greenback. What made the Indonesian rupiah strengthen today?

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