Indonesia's New Health Law: Notable Amendments to Watch

In a situation where serious medical malpractice cases dominate the headlines of Indonesian news every week, the new health law is considered very welcome news by Indonesian citizens who doubt the reliability of their domestic doctors and travel to neighboring countries such as Singapore and Malaysia for medical treatment.

The Indonesian medical market has been very restrictive and closed to foreign doctors practicing medicine, but recently Indonesia has been gradually opening its market by allowing foreign doctors to perform medical activities. Indonesia is a country with many islands. Many medical professionals are active mainly on Java Island and in Jakarta. The further one goes to the provinces, the harder it is for patients to receive medical benefits. According to the World Bank, Indonesia has 6 doctors per 10,000 people, which is fewer than neighboring Singapore (25), as well as Thailand (9) and the Philippines (8). As a result, many people often have to wait a long time to receive treatment from doctors or go abroad to nearby countries such as Singapore and Malaysia for medical care. The annual cost for Indonesians receiving medical treatment overseas reaches $11.5 billion (approximately 14.8 trillion KRW). Therefore, the Indonesian government's enactment of a law allowing foreign doctors to practice medicine within Indonesia is truly welcome. In the future, it is also worth expecting the entry of Korean doctors specializing in plastic surgery and dermatology, who lead excellent technology and K-beauty, into Indonesia.

[Photo by Beopryul Newspaper]

On August 8, 2023, the Indonesian government significantly transformed, strengthened, and accelerated the health service industry in Indonesia. Aiming to develop and improve accessibility across various societies nationwide, it officially enacted the Omnibus Health Law Article 17 (hereinafter "New Health Law"). Under the New Health Law, the authority to issue medical licenses was transferred from the Indonesian Doctors Association to the Ministry of Health, and mandatory health-related budget expenditures were abolished. Regulations related to abortion were also relaxed. Eleven health-related laws (including the previous Health Law No. 36/2009, Hospital Law No. 44/2009, Medical Law No. 29/2004, etc.) were amended all at once.

Following the amendment of this law, the authority to issue medical licenses was transferred to the Ministry of Health, allowing foreign doctors to practice medicine in Indonesia. However, foreign doctors can practice domestically only with the approval of the Indonesian Doctors Association, which grants permission only in very exceptional cases to protect domestic doctors. But the Ministry of Health allows foreign doctors who have practiced medicine for more than five years to practice if they pass the Ministry’s competency evaluation and agree to language training. This article introduces several notable changes in the New Health Law.

1. Regulatory Relaxation for Indonesian and Overseas University Graduate Doctors

The New Health Law exempts doctors who graduated from overseas universities from the existing competency evaluation requirements (consisting of administrative and clinical competency assessments) by the Indonesian Ministry of Health. Doctors who completed overseas university education

A. must have graduated from an accredited medical school and have at least 2 years of overseas clinical experience (for Indonesian doctors) or 5 years of overseas specialized clinical experience (for foreign doctors), or

B. possess expertise in a specific medical field to be able to practice in Indonesia.

The Indonesian government appears to have relaxed these regulations through the New Health Law to secure specialists who graduated from overseas universities and meet the demand for medical services throughout Indonesia. Additionally, in 2021, Indonesia removed the regulation that limited foreign ownership in hospitals and clinics to 67% to attract foreign investors, allowing 100% foreign ownership currently.

2. Simplification of Medical License

The New Health Law simplified the requirements for obtaining a medical license (Surat Izin Praktik - SIP) and medical registration certificate (Surat Tanda Registrasi - STR). Previously, doctors had to obtain 1) a recommendation letter from the Indonesian Doctors Association (IDI) and 2) approval from a hospital director-level doctor before applying for SIP and STR. These regulations were abolished. Under the New Health Law, doctors only need to obtain SIP and STR. Additionally, the provisions limiting doctors to practice at a maximum of three locations and requiring STR renewal every five years were also abolished.

3. Expansion of Telemedicine Recognition Scope

Previously, telemedicine services were limited to providers only. The New Health Law relaxed regulations to allow healthcare providers to directly provide telemedicine services to patients. However, the New Health Law does not specify detailed permissions and requirements for direct telemedicine by foreigners. Until implementing regulations are announced, Ministry of Health Regulation HK.01.07/Menkes/1280/2023 remains valid, and currently, the Ministry of Health has approved business registration for foreign companies engaged in telemedicine application businesses.

4. Patient Personal Data Protection Provisions

The New Health Law aims to establish a national health information system managed by the Ministry of Health that integrates all existing health information systems operated by central and local governments, medical facilities, and communities (both individuals and organizations), including telemedicine providers, organ transplant information systems, hospital information systems, etc. It also aims to allow the general public to access both public and personal information included in the national health information system in accordance with current data management regulations. The New Health Law stipulates that operators of health information systems must ensure the protection of personal health data and information, and the processing of personal health data must obtain prior approval from the data owner or comply with relevant laws and regulations regarding data processing. Under personal data protection laws and regulations, data owners are granted specific rights related to the management of their personal health data, including the right to be notified of the purpose of data collection, the right to access and correct data/information, the right to request data transfer, and the right to delete inaccurate data.

Experts estimate that the New Health Law requires approximately 100 implementing regulations and 30 ministerial regulations. Although many medical professionals are protesting and demonstrating against the amendments, in a situation where serious medical malpractice cases dominate Indonesian news headlines every week, the New Health Law is considered very welcome news by Indonesian citizens who doubt the reliability of their domestic doctors and travel to neighboring countries such as Singapore and Malaysia for medical treatment.

Attorney Kim Cheol-woong (Law Firm Won)

※This article is based on content supplied by Law Times.