Healthcare Insurance in Kediri Funded by Cigarette Tax Income



Laila Afifa

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  • TEMPO.CO, Jakarta - The Kediri City administration is set to register all of its residents into the Healthcare and Social Security (BPJS) which will be funded entirely by the cigarette tax profit sharing from local cigarette giant Gudang Garam.

    “Every resident [of Kediri] will own healthcare insurance by 2020,” said Kediri City Healthcare Agency Head Fauzan Adima to Tempo on Wednesday, January 9.

    The Finance Ministry’s Decree No.222/PMK.07/2017 mandates that 30 percent of excise income to be used to help boost the national health insurance (JKN) program. Fauzan explains that the profit sharing received by the Kediri City administration is Rp60 billion annually.

    This is obtained from the Gudang Garam factories that produce its products in Kediri City.

    The Kediri City BPJS marketing assistant manager Budi Wusono Adi expresses his appreciation for the strategy taken by the administration and argues that it will fulfill the people’s need for affordable healthcare insurance.