02.02.08.01. Do remittances play an important role in the financing of health care? | Indonesia

02.02.08.01. Do remittances play an important role in the financing of health care? | Indonesia

13 Apr 2022

According to the World Bank, remittances play an important role in Indonesia. The World Bank states that almost seven per cent of Indonesia’s labour force (9 million people) worked overseas in 2016. They sent more than IDR 118 trillion ($8.9 billion), which amounts to about one per cent of GDP, in remittances. It remains unclear what proportion is spent on health care (World Bank, 2017).

Research has found that remittances positively contribute to the health status of adult recipients in rural areas. It was reported that adults in household with family members who were labour migrants were ‘40% less likely to be underweight than those in non-migrant households’. This suggests that remittances may improve the overall health of families (Lu, 2013; UNESCO, 2017, p.6).

References:

Lu, Y. (2013). Household Migration, Remittances and Their Impact on Health in Indonesia 1. International Migration, 51, e202–e215. https://doi.org/10.1111/j.1468-2435.2012.00761.x

UNESCO. (2017). Overview of Internal Migration in Indonesia. Unesco.

World Bank. (2017). Indonesia Can Improve Opportunities for and Protection of Its Migrants Working Abroad. Press Release. https://www.worldbank.org/en/news/press-release/2017/11/28/indonesia-can-improve-opportunities-for-and-protection-of-its-migrants-working-abroad