per 10,000 Population

*(2019), **(2017), ***(2016), ****(2014)

To address this issue and various other issues related to the provision of healthcare services in Indonesia, the government has decided to revamp the regulations related to healthcare services by issuing the Omnibus Law on Health for better health system in Indonesia. The House of Representatives of Republic Indonesia (“DPR RI”) has successfully passed the Omnibus Law on Health on July 11^th, 2023 (the “Omnibus Law on Health”) and which has also been signed by President Joko Widodo on August 8^th, 2023. Previously, healthcare services in Indonesia were regulated in separate laws and regulations, i.e Law Number 36 of 2009 on Health, Law Number 36 of 2014 on Health Workers, Law Number 38 of 2014 on Nursing, and others.

With the issuance of Omnibus Law on Health, it is expected that the hospitality-based approach in which hospitals are able to independently carry out health professional education, such as specialists and subspecialists, can be successfully implemented. Furthermore, another objective of the government with the implementation of the Omnibus Law on Health is to alleviate the shortage of medical workers (i.e doctors, specialized doctors, subspecialized doctors), and other health workers in Indonesia. The inevitable enactment of the Omnibus Law on Health must be in harmony with the other 10 revoked Health regulations. This newsletter will highlight the changes in the health sector that might happen in the future according to Omnibus Law on Health.

Changes to Working Permit Requirements for Medical Workers and Health Workers (including for foreign doctors)

The Omnibus Law redefines healthcare services providers into medical workers – which includes doctors and dentists – and health workers – which includes nurses, radiologists, and other health workers. Each personnel are identified by the issuers of its medical education degrees: (a) domestic graduates of all nationality – Indonesian or foreigners, in which for the purpose of this newsletter would be identified together as domestic graduates; (b) Indonesian citizen graduated from abroad; and (c) Foreign medical and health workers.

Previously, as stipulated in Law 36 of 2014 on Health Workers, to practice in Indonesia, domestic graduates and Indonesian citizen graduated from abroad needs to pass a competency examination and acquiring a Registration Certificate (“STR”) and Practice License (“SIP”), which needs to be revalidate every 5-year. As for the foreign medical and health workers, besides obtaining a STR that valid for one year (which can be extended for another year) and a SIP, they also must go through a competency examination.

With the issuance of Omnibus Law on Health, such provisions related to STR, SIP, and competency examination are amended. Most importantly, Omnibus Law on Health caters opportunity for both Indonesian citizen graduated from abroad and foreign medical and health workers to work and do medical practice in Indonesia with simpler provisions.

a. STR

Omnibus Law on Health simplifies that STR would be issued by the Indonesian Health Council in the name of the Ministry of Health which would be valid for a lifetime period for medical and health worker who’s a domestic graduates and Indonesian citizen graduated from abroad.

Under the Omnibus Law on Health, it is stipulated that only foreign medical worker that is classified as specialists and subspecialists and health workers of certain competency level eligible to work and practice medicine in Indonesia. Such foreign medical and health workers must obtain an STR which will be valid for 2 years and may be renewed once for the next 2 years. However, this Omnibus Law on Health simplifies the requirement for such foreign medical and health workers in that they’re exempted from the obligation to pass the competency test, as we will explain in section c of this newsletter.

With that being said, Indonesian medical and health workers whose a domestic graduates and Indonesian citizen graduated from abroad will no longer be required to renew their STR. This provision is expected to demonstrate the government’s endeavor to boost the number of specialized doctors, both Indonesian and/or foreigners, by streamlining the process of obtaining registration certificate.

b. SIP

There are no drastic changes to the provision of SIP in Omnibus Law on Health. In order to obtain SIP, medical or health worker must have (i) STR; and (ii) a place of practice.[1] The SIP shall be valid for 5 (five) years, with exception for foreign medical and health workers, for which the SIP will only be valid for 2 years and may be renewed once for the next 2 years, as long as the place of practice is still in accordance with what is stated in the SIP and can be extended as long as it meets the requirements for extension. The requirements for the SIP renewal are (i) STR; (ii) place of practice; and (iii) fulfillment of the adequacy of professional credit units conducted by the Minister of Health.

c. Competency Examination

Besides having to obtain STR and SIP, medical and health workers can practice in Indonesia after passing competency examination by the Minister of Health and involving the minister who organizes government affairs in the field of education, the Council, and the Collegium.[2] However, this requirement is exempted for:

1. Foreign medical and health workers that have been recognized and have practiced for at least 5 (five) years abroad (proven by a letter certificate or other document issued by an authorized institution in the relevant country), or experts in a field of excellence in Health Services (Proven by a competency certification) that have practiced for at least 5 (five) years abroad, and
2. Indonesian citizen graduated from abroad who have a recognized foreign medical degree and have practiced at least 2 (two) years abroad, or experts in the field of excellence in Health Services evidenced by competency certification.

d. Specific Provisions for Foreign Medical and Health Workers

In addition, Omnibus Law on Health specified that foreign medical and health workers can only practice at Health Care Facilities in Indonesia based on (i) the demand and needs related to their specialization; (ii) transfer of scientific technology; and (iii) only for a certain period of time. This limitation to the period of practice in Indonesia are exempted for foreign medical and health workers who practice in the Special Economic Zone.

The ease of requirements for Indonesian citizen graduated from abroad and foreign medical and health workers to be able to medical practice in Indonesia is expected to open investment opportunities for hospitals with international quality services that can serve the Indonesian community, provide quality health service options for the Indonesian community, and reduce the possibility for the public to seek treatment abroad in order to get high-quality health services.

Patient Rights

With the aim of complementing various laws and regulations that have previously existed and becoming a foundation in realizing a health service system that is capable to protect and serve the community (patients) better, Patient’s Rights have also become a priority through the addition of several new provisions on Omnibus Law on Health.

Omnibus Law on Health introduce provisions that every Patient has the right to accept or refuse the medical assistance (except for an infectious diseases) and the right to access information contained in Patient’s medical record documents made by doctors and health workers. This right to information is expected to make it easier for patients to get treatment that suits their needs. With the rights as mentioned before, every Patient is still obliged to obey the medical advice by medical workers/health workers.

The Omnibus Law on Health has a considerable impact not only on the health sector, but also on the business sector. Now, hospitals in Indonesia can hire foreign doctors and health workers with simpler requirements, there are even no time restrictions for doctors and specialist health workers who open practices in Special Economic Zones. This can open investment opportunities for hospitals with international quality and increase the patient’s trust in the hospital.

This newsletter is for informational purposes only and solely intended to provide general information and should not be treated as legal advice, nor shall it be relied upon by any circumstance or create any relationship. All summaries of the laws, regulation and practice in the contents are subject to change. Specific legal advice should be sought by interested parties to address their particular circumstances.

If you have any question and/or wish to discuss further about the above or to discuss the impact of these legal and commercial developments in your particular case, please reach out to Cylvie at cylvie@sapartnerslaw.com.

[1] https://dataindonesia.id/kesehatan/detail/rasio-dokter-indonesia-terendah-ketiga-di-asia-tenggara

[2] Art. 264 Omnibus Law on Health

[3] Art. 248 Omnibus Law on Health