The Human Development Plan of Indonesia

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Barro (1996) argues that there is a connection between the health levels of a country and its economy. The connection is two-way, forming a feedback loop. Improved health outcomes allow people to be more productive. More productive people earn more, and are therefore able to pay for better health care, and this becomes a cycle in society. Thus, societies with higher levels of health care have healthier and therefore more productive workers. Indonesia does not score well on health care in the United Nations Development Program (UNDP) human development index, with a life expectancy at birth of 69.4 years. Public expenditure on health is just 1.2% of GDP, meaning that there is little contribution to health care, and most Indonesians rely on cash payments or private insurance for whatever health care they receive. The country has a plan to offer coverage to 100% of its people by 2014. There are doubts about whether this can be implemented due to the cost and complexity of the project. There are significant gaps between health care in major cities and health care in rural areas and on remote islands (Franken, 2011). A company operating in Indonesia is likely going to need to supply supplemental coverage to most employees. The national plan, when implemented, will only cover visits to Class III hospitals. Managerial workers in particular will want insurance provided that would give the access to better hospitals. High-quality private hospitals are available for executives and
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