Traditional Health Services are the practice of providing health services based on knowledge, expertise, and/or values derived from local wisdom that must be empirical and have proven benefits and safety, as referred to in Article 479 of Government Regulation Number 28 of 2024 concerning Implementing Regulations of Law Number 17 of 2023 concerning Health (” PP Health “).
Traditional health services are organized in Health Centers and carried out by registered Traditional Health Care Providers. Types of Health Centers are divided into Individual Health Centers run by individual Traditional Health Care Providers and Group Health Centers run by individual Traditional Health Care Providers. as stated in Article 1 and Article 19 of the Regulation of the Minister of Health Number 61 of 2016 Concerning Empirical Traditional Health Services (“ PERMENKES 61/2016 ”)
The establishment of a health center business activity can be carried out by Indonesian citizens through Domestic Investment (“ PMDN ”) and foreign citizens based on Foreign Investment (“ PMA “). Before carrying out the health center business activity, some things need to be considered, including the following:
1. Indonesian Standard Classification Code for Business Fields (“ KBLI”) 86902
This group includes promotive and preventive health services through traditional health services carried out by traditional healers and organized in health centers. Business Licensing in this KBLI has a medium-low risk level and the validity period of the permit is 5 (five) years.
2. Provisions for Establishing PMA Health Centers:
The mandatory business capital is above IDR 10,000,000,000.00 (ten billion rupiah) excluding the value of land and buildings. (Article 7 paragraph (1) of Presidential Regulation Number 10 of 2021 concerning the Investment Business Sector as amended by Presidential Regulation of the Republic of Indonesia Number 49 of 2021 concerning Amendments to Presidential Regulation Number 10 of 2021 concerning Investment (“ PERPRES on the Investment Business Sector ”) which reads as follows:
Article 7
- ” Foreign investors may only carry out business activities in large businesses with an investment value of more than IDR 10,000,000,000.00 (ten billion rupiah) excluding the value of land and buildings. “
In the form of a Limited Liability Company established and domiciled in Indonesia (Article 7 paragraph (2) of the Presidential Decree on Investment Business Sector)
- ” Foreign investment must be in the form of a limited liability company based on Indonesian law and domiciled within the territory of the Republic of Indonesia unless otherwise determined by law. “
3. Establishment of PMDN Health Center
Based on Article 21 to Article 22 of PERMENKES 61/2021, Health Centers can be established by legal entities or individuals without any regulations regarding capital.
4. Traditional Healer
Organizers of PMA and PMDN Health Centers (individuals, groups) must have Traditional Health Care Providers whose competency has been tested and have a ” Traditional Health Care Registered Letter” issued by the Health Office according to the Health Care Provider’s domicile. In addition, Health Care Providers from PMDN and PMA Health Centers must be Indonesian citizens as referred to in Article 50 of the Government Regulation of the Republic of Indonesia Number 103 of 2014 Concerning Traditional Health Services (” PP on Traditional Health Services “) which states the following:
Article 50
Foreign traditional healers are prohibited from practicing/working or transferring technology to provide empirical Traditional health services in Indonesia, including in the context of social work.
5. Terms of Service
Health Centers must have facilities and equipment that meet the requirements of sanitation and hygiene, ventilation, lighting, and sufficient space, to fulfill the provisions of the Standard Certificate that must be fulfilled by Business Actors to obtain a Business License.
6. Business Licensing Procedures
Based on Article 23 paragraph (1) of PERMENKES 61/2016 and Attachments to the document of the Regulation of the Minister of Health of the Republic of Indonesia Number 14 of 2021 regarding the licensing process for Group Health Centers include the following:
a. Business Licensing Registration is carried out through the OSS system by including the following documents:
- STPT of each Traditional Healer;
- copy/photocopy of the deed of establishment of the business entity except for individual ownership;
- complete identity of the applicant;
- domicile certificate from the sub-district;
- The profile of the Health Center to be established includes the organizational structure of the management, a list of personnel including the number and type, facilities and infrastructure, equipment and the type of services provided; and
- district/city health department recommendations
b. Business Actors make Standard Compliance Statements through the OSS System;
c. NIB is issued.
The local city/district Investment and Integrated One-Stop Service Office (” DPMPTSP “).
7. Compliance Sanctions
Business actors who do not comply with the health center business permit requirements properly may be subject to administrative sanctions as referred to in Article 444 paragraph (1) of Government Regulation of the Republic of Indonesia Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing, which reads as follows:
Article 444
Every Business Actor who, based on the results of Supervision, is found to have non-compliance or violations of Business Licensing in the health sub-sector, will be subject to administrative sanctions in the form of:
a. warning;
b. temporary suspension of business activities;
c. imposition of administrative fines; and/or
d. revocation of Business License.
Ilham Satria Wibawa, Born in Madiun, July 6, 1998. Obtained a Bachelor of Laws (SH) degree from Gadjah Mada University in 2022. Currently an Advocate at PNP Counselors at Law.