The Distribution of Subsidies through Public Health Services in Indonesia, 1978–87

Abstract

Indonesia has made great progress during the past fifteen years in enhancing the command of the poor over privately provided goods, such as food, clothing, and housing. Has similar progress been made in improving their access to publicly provided social services? The article looks at how the use of health services and the incidence of subsidies in the health sector varied across socioeconomic groups in Indonesia in 1987. It also examines how the distributions of utilization and subsidies altered between 1978 and 1987. The findings indicate that changes in utilization patterns and in the incidence of subsidies have been pro-poor. Disparities in access and utilization have diminished. However, public spending on health care is not yet well targeted.

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