Public support on increasing cigarette prices and excise to finance UHC in Indonesia
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Universitas Indonesia, Center for Health Economic and Policy Studies, Indonesia
Publication date: 2018-03-01
Tob. Induc. Dis. 2018;16(Suppl 1):A690
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Indonesia has the highest prevalence of adult men smokers with 67%. Cigarette related disease will burden JKN (UHC) which currently has burden claim ratio of 115%. The difficulties in collecting contribution from non-salaried workers are blamed to contribute the deficit. Many countries have earmarked cigarette excise to supplement financing health program. This study explored the possibility public support on increasing cigarette prices and excise to meet financial shortage of the JKN.

The study used telephone polling conducted from December 2015 to January 2016. 1.000 respondents was selected using systematic random sampling by the interval of 20.000 of mobile phones numbers. Analysis was focused on how various groups support increasing cigarette prices and excise and the allocation to finance JKN. The final analysis was logistic regression to assess any difference in supporting the price and excise increase.

The polling showed, in total, 80.3% respondents support increasing cigarette price and exice to supplement health financing of JKN. The proportion of non smokers who supported the earmarking was higher (83.4% ) compared to smokers (75.9%), but the difference is not significance in the final model. There are plenty of room to mobilize money through increasing prices and excise of cigarettes since more than 72.3% of smokers said that they would stop smoking if the price of cigarette is above IDR 50,000 per pack; far above current prices. If the prices of cigarettes are double and the excise level reaching maximum allowable levels, there is potential to increase revenue up to IDR 70 Trillion that is almost equivalent to estimated all claims of JKN in 2016.

This study found that large majority (80%) of non-smokers and 76% smokers supported increasing cigarette prices and excise to supplement financing for the JKN. The potential money to supplement JKN is double of the current revenue of JKN.