KRIS Implementation: Enabling the A-Game within the Industry
Key Takeaways :
▪️ The Indonesian government, through Presidential Decree No.59 2024, mandates standardization for inpatient classes (KRIS) for Health BPJS members to ensure similar quality of services and facilities. Healthcare facilities must meet 12 conditions to apply KRIS. Currently, the majority of hospitals (3,060 out of 3,176) are implementing KRIS, with 2,558 already meeting the criteria as of April 30th. Hospitals must provide KRIS facilities, with at least 60% by government units and 40% by private hospitals. The full implementation is targeted for the 2H25F.
▪️ As of July 1, 2025, BPJS will maintain current contribution rates (Classes 1, 2, 3) while considering a single rate. If implemented, Class 3 participants will dominate. Affordable rates for Class 3 are crucial as no fee increase is planned until at least FY24. KRIS regulations may impact HEAL, which derives 73% of its revenue from JKN patients. There may be a shift from Class 1 JKN to commercial health insurance, aligning with a 24.9% YoY increase in health insurance claims to IDR 20.8tn in FY23.
▪️ We upgrade our rating for the healthcare sector from Neutral to OVERWEIGHT, citing resilient performance and healthy balance sheets that provide room for growth. Tight regulations pose risks, but some companies are still likely to perform well in FY24 due to their industry bargaining power.
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