Starting in 2025, Indonesia’s national health insurance system, BPJS Kesehatan, will undergo a major transformation through the implementation of KRIS (Kelas Rawat Inap Standar). This change aims to standardize inpatient hospital services across all classes and provide a more equitable healthcare system. For employers, this shift brings both opportunities and challenges in managing employee benefits, compliance, and operational costs.
This article delves into what KRIS entails, how it changes the landscape of BPJS Kesehatan, and the potential implications for businesses across Indonesia. By understanding these changes now, employers can develop a strategic approach that supports both employee well-being and operational efficiency.
What is KRIS (Kelas Rawat Inap Standar)?
Background of BPJS Kesehatan
BPJS Kesehatan is a government-mandated health insurance program that provides universal coverage for Indonesian citizens and residents. It operates on a tiered class system—Class I, II, and III—determining the level of inpatient hospital accommodation and services. Each class previously offered varying room configurations, service levels, and treatment benefits, creating a disparity in perceived healthcare quality.
Introduced in 2014, BPJS Kesehatan has since expanded to cover over 200 million Indonesians. However, criticisms regarding unequal service quality and class-based stigma have persisted, prompting the government to propose a new system.
The Shift to KRIS
KRIS is a government initiative to eliminate the class-based system and replace it with a standardized inpatient room class. According to Presidential Regulation (Perpres) No. 59/2024, starting January 1, 2025, all healthcare providers collaborating with BPJS must offer inpatient services based on KRIS standards, effectively removing the Class I–III distinctions. This shift is seen as a crucial step in establishing a more uniform, fair, and dignified healthcare experience for all BPJS members.
Objectives of KRIS
- Promote equity in healthcare service access regardless of socioeconomic background.
- Ensure quality and standardization of hospital facilities and services across the board.
- Reduce the stigma associated with class-based medical services and foster a sense of equality among patients.
- Support universal health coverage goals by emphasizing fairness in healthcare delivery.
Key Changes Under KRIS Implementation
Standardized Room Facilities
KRIS mandates that inpatient rooms meet minimum standards in terms of space, privacy, ventilation, sanitation, and other amenities. The key requirements include:
- Maximum of 4 patients per room.
- Adequate bed spacing for privacy and infection control.
- Individual power outlets and shared access to facilities like bathrooms and sinks.
- Better ventilation and air circulation to prevent airborne disease transmission.
- Enhanced lighting and noise control for improved patient comfort.
These upgrades aim to elevate the baseline experience for all patients and ensure that hospitals meet a consistent quality benchmark.
Uniform Service Regardless of Premium Contribution
Under KRIS, all BPJS participants, regardless of their contribution level, will receive the same standard of inpatient care. This change eliminates the ability to “upgrade” accommodations by paying higher premiums or opting for Class I services. While this may simplify the system, it also removes flexibility for contributors who previously expected differentiated benefits.
Employers will no longer be able to offer BPJS class upgrades as part of their incentive packages. This may encourage more companies to explore complementary private insurance options.
Transition Period and Adaptation for Hospitals
Hospitals are given until June 30, 2025, to complete the adjustment of their infrastructure and services. The Health Ministry and BPJS Kesehatan will jointly oversee this transition. Regular audits and financial assistance programs are expected to support facilities in meeting KRIS requirements.
Private hospitals that previously offered premium-class rooms will need to restructure services and pricing models to comply with the standardized system. This may affect their profitability and impact existing agreements with corporate clients.
Implications for Employers
1. Cost Management and Budgeting
Previously, employers could offer different BPJS classes as part of employee benefits. With KRIS, the differentiation based on class disappears. However, employers may face:
- Increased indirect costs due to hospital upgrades being reflected in BPJS premiums over time.
- Higher demand for private insurance to supplement standard BPJS coverage.
- The need to reassess employee benefits budgets and negotiate new insurance agreements.
Businesses should begin scenario planning now to anticipate potential increases in employee healthcare-related expenses.
2. Re-evaluation of Health Benefits Packages
Since all employees will now receive uniform inpatient care through BPJS, businesses may consider:
- Offering top-up private insurance plans for employees who expect higher service levels, especially for executive or expatriate staff.
- Negotiating group insurance plans that complement KRIS, providing access to private rooms, shorter waiting times, or specialized treatments.
- Reviewing HR policies and contracts to align with the new healthcare norms and employee expectations.
This is also an opportunity to standardize benefit offerings and ensure equity across employee groups.
3. Communication and Change Management
Transitioning to KRIS requires clear internal communication. Employers should:
- Educate employees about what KRIS means, including changes to entitlements and how it differs from the previous system.
- Provide clarity on the removal of class-based services and what it means for their hospital experience.
- Set expectations around healthcare entitlements and encourage employees to consider voluntary private coverage where appropriate.
Clear communication can help mitigate confusion and boost employee confidence in the company’s support.
4. Compliance and Reporting
All employers are required to register employees with BPJS and ensure timely premium payments. With KRIS implementation, employers should:
- Stay updated with regulatory changes and deadlines.
- Review contracts with healthcare providers and insurance partners to ensure they remain compliant.
- Ensure all BPJS contributions reflect the current rates and coverage, and update internal systems accordingly.
Non-compliance can result in legal consequences and reputational damage, making vigilance essential.
Challenges in the KRIS Transition for Employers
HR and Admin Workload
HR departments will need to handle more inquiries and documentation related to the changes in healthcare benefits. There might also be increased administrative overhead due to additional private insurance management, claims processing, and regulatory reporting.
Smaller businesses may feel the strain more acutely, especially if they lack a dedicated HR team.
Employee Satisfaction and Morale
Employees who were previously entitled to Class I treatment may perceive the shift to KRIS as a downgrade. Employers must proactively manage employee sentiment and ensure that the change is positioned as part of a national effort to improve healthcare equity.
Offering additional wellness programs or private health options can serve as a morale booster during the transition.
Infrastructure Readiness
Some companies operate in remote areas where hospitals may struggle to comply with KRIS standards by the 2025 deadline. This could result in service inconsistencies, impacting employee confidence in the system.
In such cases, businesses may need to support employee relocation or transport to compliant medical facilities.
Opportunities for Businesses
Corporate Social Responsibility (CSR)
Supporting local hospitals in meeting KRIS requirements can be part of a company’s CSR initiative. For instance, businesses can fund infrastructure upgrades, donate medical equipment, or sponsor health education programs for underserved communities.
This not only aids the healthcare transition but also strengthens the company’s social license to operate.
Partnership with Health Providers
Companies can negotiate better service terms or collaborate with health providers to offer hybrid insurance models that combine BPJS KRIS and private insurance. These partnerships can lead to more flexible healthcare options and cost-sharing strategies.
Joint wellness initiatives can also promote preventative care and reduce long-term health costs.
Leveraging EOR Services for Compliance
Businesses expanding into new regions or employing remote workers can utilize Employer of Record (EOR) services to ensure full compliance with the new BPJS Kesehatan regulations under KRIS. EOR partners can handle registration, documentation, payroll, and benefit management in alignment with evolving healthcare rules.
This is especially beneficial for foreign companies or startups navigating Indonesia’s complex regulatory environment.
Government Support and Employer Engagement
The Indonesian government has pledged to support hospitals financially and technically to meet KRIS standards. Employers can:
- Engage in dialogues with BPJS representatives and industry groups.
- Participate in industry associations to voice concerns or suggestions and influence implementation strategies.
- Monitor pilot implementations and regional rollouts to better prepare for their own transition.
- Leverage government incentives or grants aimed at easing the adjustment period for businesses.
Proactive engagement ensures businesses are not caught off guard and remain part of the conversation.
Conclusion
The implementation of KRIS in 2025 marks a significant milestone in Indonesia’s healthcare reform. While it aims to provide equal access to inpatient care, it also brings a variety of implications for employers—from budgeting and compliance to employee communication and benefits restructuring.
Employers must approach this transition strategically. By understanding the nuances of KRIS and proactively managing its impact, businesses can continue to support employee health and wellbeing while staying compliant with national regulations. The changes also offer an opportunity to rethink benefits, enhance communication, and strengthen employee trust.
As the KRIS transformation unfolds, navigating compliance and administrative complexity becomes increasingly important. CPT Corporate offers comprehensive Employer of Record (EOR) services to help your business remain fully compliant with Indonesia’s labor and healthcare regulations. From employee registration and payroll to BPJS management and ongoing support, CPT Corporate ensures a seamless employment experience—especially during times of regulatory change.
With local expertise and deep regulatory knowledge, CPT Corporate acts as a reliable partner for your expansion and workforce management in Indonesia. Whether you’re a startup, SME, or multinational corporation, we tailor our services to fit your operational goals. Contact CPT Corporate today to learn how our EOR services can support your workforce in adapting to KRIS and beyond.
