Fiscal Space for Health in Indonesia: Public Sector Opportunities and Constraints in Achieving the Goals of Indonesia's Mid-Term Development Plan

Given the impact of COVID-19 on government revenue-raising capability in the 2020-2021 period, the report incorporates projections of recovery and trends in fiscal transfers between levels in Indonesia's decentralized system. The report concludes that both national and subnational levels of government will need to prioritize health more in budgetary allocations to expand primary healthcare coverage and quality and to support a subsidized expansion of JKN membership. If available fiscal space within tobacco and sugary beverage taxation and more flexible fiscal transfers at the subnational level are tapped, then Indonesia can finance its RPJMN health sector goals.