BACKGROUND

Indonesia's healthcare sector has undergone a significant transformation with the enactment of the Omnibus Health Law (Law No. 17 of 2023). This law, coming into force in August 2023, aims to address the systemic vulnerabilities in Indonesia's healthcare system exacerbated by the COVID-19 pandemic. It replaces 11 existing laws,2 introducing sweeping reforms to revitalize healthcare services, technology, and human resources.

KEY REQUIREMENTS

  1. Primary and Referral Services: Expansion of hospital activities to include clinics, pharmacies, and laboratories.3
  2. Health Resilience Systems: Focus on domestic sourcing for medical raw materials and promoting domestic healthcare enterprises.4
  3. Healthcare Personnel: Allows qualified foreign medical and healthcare personnel to practice in Indonesia, subject to stringent requirements.5
  4. Licensing: Streamlining of licensing procedures for medical and healthcare personnel, including indefinite validity of Registration Certificates (STR) and relaxation of practice location restrictions for SIP (Surat Izin Praktik).6
  5. Legal Framework: Structured approach to address medical malpractice and negligence, balancing protection for medical professionals and patients' rights.7

IMPLICATION

The Omnibus Health Law marks a pivotal shift in Indonesia's healthcare landscape. It introduces a more integrated and comprehensive approach to healthcare delivery, emphasising the enhancement of healthcare services through technological advancements and the augmentation of human resources. The law's emphasis on domestic industry and foreign healthcare personnel participation signals a robust move towards a self-reliant and globally competitive healthcare sector.

CONSIDER

Legal and healthcare entities must consider the new regulatory landscape introduced by the Omnibus Health Law. This includes adapting to expanded business activities for healthcare facilities, navigating the revised licensing regime, and complying with the new standards for foreign healthcare personnel practice. Additionally, the law's focus on domestic industry and healthcare technology underscores the need for strategic alignment with these priorities.

CONCLUSION

The Omnibus Health Law is a transformative legislation to revitalise Indonesia's healthcare system. It offers a more responsive, comprehensive, and cost-effective framework, addressing long-standing challenges and paving the way for a significant positive transformation. Entities operating in the healthcare sector must closely monitor and adapt to these changes to align with the new regulatory environment.

Footnotes

1. Setyawati Fitrianggraeni holds the position of Managing Partner at Anggraeni and Partners in Indonesia. She also serves as an Assistant Professor at the Faculty of Law, University of Indonesia, and is currently pursuing a PhD at the World Maritime University in Malmo, Sweden. This article is co-authored by Sri Purnama, Junior Legal Research and Jericho Xafier Ralf, Trainee Associate Analyst at Anggraeni and Partners.

2. Law No. 419 of 1949 on Prescription Drugs, Law No. 4 of 1984 on Plagues Law, No. 29 of 2004 on Medical Practice, Law No. 36 of 2009 on Health, Law No. 44 of 2009 on Hospitals, Law No. 20 of 2013 on Medical Education, Law No. 18 of 2014 on Mental Health, Law No. 36 of 2014 on Healthcare Professionals, Law No. 38 of 2014 on Nursing Practices, Law No. 6 of 2018 on Health Quarantine, Law No. 4 of 2019 on Midwifery.

3. Article 167 of Law Number 17 of 2023 concerning Health Law (Law 17/2023).

4. Article 326 of Law 17/2023.

5. Article 248 paragraph (7) of Law 17/2023.

6. Article 242, Article 244, Article 246 paragraph (1), Article 249, and Article 252 of Law 17/2023.

7. Article 189 of Law 17/2023.

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