Government Allocates Cigarette Tax for Health Care Deficit

Jakarta, MINA – Indonesian government decided to allocate 50 percent of cigarette tax to cover the deficit of the Health Care and Social Security Agency (BPJS).

“Yes, we have already issued it. First, it is a mandate of the Law that 50 percent of the excise tax on cigarettes is used for health services,” President Joko Widodo told reporters.

”BPJS deficit must be closed so that health services for the community can be carried out as soon as possible,” President added.

President Jokowi has ordered the Finance and Development Supervisory Agency (BPKP) to audit BPJS deficits. “This means that this is a procedure, accountability, everything has been passed.”

The President also ordered the Managing Director, the Board of Directors of BPJS to improve both of the verification and the financial system, because they come from the center to the districts, cities, provinces and throughout the country.

“This is not an easy thing, how to control, and monitor the hospital. It is not something easy, “said the President, adding that he had experienced everything from the scope of the city, there is also a Health Card,” President added.

Based on the BPKP audit, BPJS Health deficit in 2018 estimated around 10.98 trillion rupiahs. Meanwhile, the budget is disbursed by the government only around 4.9 trillion rupiahs. Therefore, the tobacco excise tax and cigarette tax are expected to cover the BPJS deficit. (TR/Sj/P2)

Mi’raj News Agency (MINA)