In 2024, CHAMPS UI, in collaboration with Indonesia’s National Development Planning Agency (Bappenas), conducted a strategic study to address one of the most pressing challenges in Indonesia’s health system: the financial sustainability of government-owned hospitals.

This initiative aimed to strengthen hospital autonomy by developing a roadmap that enhances operational efficiency, secures sustainable financing, and ensures high-quality healthcare delivery. The study examined financial management systems, highlighted disparities between central and local hospitals, mapped financial capacities, and proposed actionable targets and regulatory improvements for the 2025-2029 period.

To guide this process, the research introduced key indicators of financial independence. These indicators provide hospitals with a framework to reduce reliance on state funding and move toward greater operational self-sufficiency. By engaging policymakers and hospital administrators through consultations and field data collection, the study identified gaps in current practices and offered strategies for more effective resource optimization.

A major finding was the critical importance of revenue diversification. Government hospitals were encouraged to move beyond dependence on National Health Insurance (JKN) claims by expanding premium services, investing in advanced medical care, and fostering collaborations with the private sector. The study also emphasized the need for hospitals to allocate portions of their revenues toward long-term priorities, such as infrastructure upgrades and technological innovation.

Equally important were recommendations for regulatory reforms. Harmonizing existing frameworks will enable hospitals to exercise greater financial and operational autonomy, while still upholding service quality standards.

By laying out a clear roadmap and evidence-based strategies, this research provides a foundation for transformative policy directions that support Indonesia’s broader goal of building a resilient and self-reliant healthcare system. The findings not only address immediate financial pressures but also pave the way for sustainable improvements, marking a significant milestone in the evolution of Indonesia’s public hospital governance.