Indonesia Universal Health Coverage Development Policy Loan

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The development objective of Universal Health Coverage Development Policy Loan (DPL) Project for Indonesia is to support the government’s efforts to strengthen the supply of medical care professionals. Within the Government of Indonesia (GoI’s) program and priorities as defined by the Rencana Pembangunan Jangka Panjang Nasional (RPJPN) and Rencana Pembangunan Jangka Menengah Nasional (RPJMN), the DPL includes a set of Prior Actions (PAs) that support select high-impact policy reforms centered around the Health Omnibus Law (HOL). PA 1 supports policy reforms that change the previously overlapping and convoluted policies for the registration and licensing of medical doctors which limited the domestic supply of doctors and created opportunities for rent-seeking. PA 2 supports policy reforms to improve the supply of foreign medical doctors and Indonesian medical doctors who graduated abroad, including by exempting certain such professionals from a competency test. PA 3 supports policy reforms to create viable pathways for non-Indonesian medical doctors to practice in Indonesia, to improve the supply of such doctors by extending their permitted duration of practice. PA 4 supports policy reforms to expand the supply of specialist medical doctors through a nationwide hospital-based residency program with codified competency standards. PA 5 supports policy reforms to enhance health system resilience through establishing a healthcare worker reserve. The policy reforms supported by the DPL are expected to unlock critical constraints in the health system. The DPL is aligned with the goals of the Paris Agreement and consistent with Indonesia’s climate commitments.