Indonesia’s healthcare sector has the potential to drive economic growth and job creation, with annual healthcare spending reaching approximately US$40 billion, Health Minister Budi G. Sadikin said at an economic diplomacy forum in Jakarta (09/10).

He highlighted opportunities to expand investment and international cooperation to develop the sector.

Indonesia Healthcare Investment Offers Growth Opportunities

Speaking at the KADIN Monthly Economic Diplomatic Breakfast (K-MEd), organized by the Indonesian Chamber of Commerce and Industry (Kadin) at the Ministry of Health on Friday, October 9, 2026, Budi said the healthcare sector could grow by more than 8%, including in employment.

“The opportunity in the healthcare sector is enormous. It is one of the promising sectors that can grow by more than 8%, and employment can also grow by more than 8%. Therefore, we are discussing investment opportunities and cooperation with foreign countries,” Budi said.

Kadin Chairman Anindya Bakrie also identified healthcare as a strategic sector that could help Indonesia increase its economic growth.

“When we talk about healthcare, this is a sector that we believe can help Indonesia increase economic growth from 5% to 6%, 7%, and eventually 8%,” Anindya said.

Healthcare Spending Could Unlock Major Investment Potential

Budi said Indonesia could create significant economic opportunities by increasing healthcare spending to levels comparable with other countries. If Indonesia reached Malaysia’s level of healthcare spending, the potential additional expenditure would be approximately US$84 billion.

If spending reached Singapore’s level, the potential could reach approximately US$840 billion per year, according to Budi.

“These are opportunities. The healthcare sector is actually not a cost, but an investment,” he said.

The government is therefore encouraging investment and the development of domestic healthcare industries rather than relying solely on government spending. Strengthening the industry is considered important to ensure that the benefits of economic growth and job creation are felt more widely in Indonesia.

Indonesia Seeks Stronger Global South Representation

Budi also emphasized the need to strengthen the representation of Global South countries in international organizations. He said these countries account for more than 60% of the world’s population but do not yet have significant representation in various international institutions.

“I was asked by the President to put myself forward to represent Global South countries. More than 60% of the world’s population lives in the Global South, but our voice and representation in international organizations are not yet significant. That is why I am putting myself forward as a representative of Global South countries to bring the voice of the Global South to the international arena,” Budi said.

He added that the COVID-19 pandemic demonstrated the importance of international cooperation in responding to health crises. No country could overcome such a crisis alone without support and collaboration from other countries.

“Our experience during the pandemic showed that no single country could survive on its own. Globally, these eight billion people are already interconnected. That is why we must bring everyone together as one,” he said.

Kadin Encourages Government, Business and Diplomatic Cooperation

Anindya said Kadin supports stronger collaboration between the government, business community, and diplomatic representatives to make the most of Indonesia’s economic opportunities. He said this cooperation was important to align national development with international trade and investment relations.

The KADIN Monthly Economic Diplomatic Breakfast provides a forum for government representatives, business leaders, and diplomats to discuss potential areas of cooperation. Through this forum, healthcare development is expected to contribute to stronger investment, greater national industrial competitiveness, and Indonesia’s economic growth.

PHOTO: MINISTRY OF HEALTH

This article was created with AI assistance.

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