Why You Absolutely Need Travel Insurance in Indonesia (MUST READ)

When I speak with short-time travelers in Indonesia, I am baffled to realize only a few have a proper travel insurance or a medical evacuation insurance. Among long-term residents and expats, there are also many who do not have health insurance, particularly among those without a working permit.

The objective of this article is to convince you that spending a few dollars per day on an insurance is not a waste of money. Even if you are on a tight budget, you can get a cheap one (as low as 3$ per day if you take a yearly subscription - check here) that will at least save your ass in case of a serious illness or accident. If you cannot afford it, then you probably should not travel to Indonesia.

Why you need a travel insurance in Indonesia
While you certainly need insurance everywhere, there are even more reasons to get it when you travel in Bali, Jakarta or the rest of Indonesia:

You are exposed to more risks
There are several risks specifically related to being in Indonesia. Some are unfortunately too common: Dengue fever, malaria, dog bites, food poisoning or motorbike accidents are really not that rare. If you've lived in the country long enough, you probably know a few people who had these problems.

There are generally lower safety standards in everything in Indonesia: Construction, food, transportation, roads, activities, etc. This increases the likelihood of an unfortunate event as well. You can read more tips about this topic here: WorldNomads Travel Safety Tips.

Medical care in Indonesia is very expensive

According to the AAMI, a day in an intensive care unit in Indonesia can cost up to 3,000$. Even in the cheapest hospitals you can expect to pay 800$/day.

Facebook groups like Bali Expats or Jakarta Expats are full of horrible stories of people who had their lives ruined in a few minutes because they did not plan their trips properly. Here are just a few examples (click on the photos for the whole story):

Some of them actually had an insurance, but they didn't read the fine prints. Not having a a motorbike license is often a reason for not being reimbursed for instance. I will give you tips later in this review on what you should be looking for to make sure your risky activities are covered.

More banal problems can be quite costly as well. Among my friends, several ended up in shitty situation for common accidents or diseases:

First one hit his head by diving into a pool: 1000$ in Sanglah Hospital (local one) for a few stitches and X-rays.

Second one got bit by a street dog in Legian: 3,000$ including anti-rabies medication.

Third one got a very bad case of dengue fever combined with malaria. He went into a coma and he had to stay 4 weeks in hospital. Total bill: 25,000 dollars. Luckily, he was covered and everything was paid for. It was after this unfortunate event that I rushed to get an insurance actually.

Private hospitals will never accept you if you cannot pay
In Indonesia, the decent hospitals are run as a strict business and not a charity. If you arrive bleeding to death after an accident, the doctors will not treat you until they make sure you can pay. If you can't, you'll be left outside. It's as simple as that.

An American will probably understand that. For a French, this concept is a bit hard to grasp as we are used to get healthcare for free.

Hospitals will overcharge you
You should know that as a foreigner with or without a working permit, you will be charged more for medical treatment in Indonesia. Expect to pay at least 2 times more than locals, more if you don't have a resident visa.

Many doctors have a poor ethic. If they can find a way to inflate your final bill, they will probably do it. It is a bit like going to a random auto repair shop in Europe: Most likely you will be charged for stuff you don't need.

Serious accidents will need a medical evacuation
Since many hospitals cannot treat the most serious patients, medical evacuation is often needed. To give you an idea of current prices:

Evacuation from Indonesia to Singapore: From 25,000$ to 50,000$
Evacuation from Indonesia to Australia: From 40,000$ to 70,000$
Evacuation to Europe: Up to 100,000$

Don't expect compensatory damages
The concept of third party responsibility is foreign to most Indonesians. If you are hit by an Indonesian drunk driver, don't expect you'll get any money from the person who was responsible. Actually, even if he is at fault, he could possibly still manage to get money out from you if he is a well-connected assh*le. The same thing apply if you have an accident within your hotel or while doing an activity with a company. If you are dealing with a local company, don't even think about getting compensatory damages.

What types of insurance do you need in Indonesia?

The type of insurance you need in Indonesia depends on your activity (working, retired, tourist, etc), your length of stay, your activities and your area of travel.

Travel Medical Insurance:
An insurance that will cover your medical bills for a limited duration (usually less than 90 days) when you are traveling outside of your home country. If you are traveling to Indonesia, it is the minimum you should get. For expats it is not necessary as long as they have an expat insurance.

Travel Insurance:
A generic term for an insurance that will cover several aspects of a trip: Medical problems, but also flight cancellation, theft, lost luggage, etc.

There are several websites where you can get a price estimate for your travel insurance in Indonesia. You can check WorldNomads which is a partner of Lonely Planet and Rough Guides. Among the famous ones you also have SmartTravel from AXA and Travel Guard from AIG.

You can find more options in your home country. The advantage of WorldNomads is that it is very easy to apply online and you do it even if you've already left home.

You can also search through the comparator Insure My Trip.

International Health Insurance or Expat Medical Insurance:

Travel insurance is for travelers and covers emergency situations. If you live permanently in Indonesia, you need coverage for regular health expenses such as dental care, optics, medical check ups, pregnancies, cancer treatment, etc. Those are typically not included in Travel Insurance policies.

Expats working in Indonesia should subscribe to the mandatory BPJS health insurance scheme. It is cheap, but don't expect to much from it. Many will also have their employer's insurance.

For the other expats without a company plan, you can either purchase a normal travel insurance for long term travel (but then you won't be covered for non-emergency situations) or purchase a dedicated Expat Health Insurance from a private company.

The latter is usually more expensive, but you should consider that you'll get more reimbursements as well. Reputed companies include Allianz, April-International, AXA, GMS, etc.

Repatriation/Medical Evacuation Insurance: An insurance that guarantees your medical evacuation will be paid for if needed.  The cost is usually reasonable, as little as 150$ per year, and it can save you tens of thousands of dollars. Remember that for serious injuries, you will not be able to be treated properly in Indonesia. This insurance is particularly needed if you plan on visiting remote areas.

If you purchase an insurance from WorldNomads, it is already included.

Things to check before purchasing a travel insurance

The obvious first step before purchasing a travel insurance is to make sure you don't already have one. You are probably aware that when you buy your plane tickets with a Visa or Mastercard, you are entitled to some kind of (limited) insurance. If you are traveling on a tour group, you may also already have one automatically added (though you can refuse it and buy your own instead).

Once you know for sure that you will need a travel insurance in Indonesia, you should be careful to check the following:

What is the maximum payable amount that I can get?
I think 200,000$ is the minimum amount to get considering how high some hospitals bills can be in Indonesia.

Is the medical evacuation included or not?
If not you will have to pay extra with another company. This is an essential part of your insurance and you need a high ceiling as well (minimum 150,000$).

Can you contact your insurance company 24/7? Can they approve a quotation 24/7?
This is a must in case of a major emergency. If you cannot prove quickly that you can pay for your treatment, the best hospitals may refuse you.

Do you have to advance the money?
Some insurance can give a guarantee to the hospital that your bill will be covered so you don't need to pay upfront.

Are there any exclusions?
There are always a lot of exclusions (things that the insurance does not cover). Read carefully to avoid any surprises. If you are planning to do dangerous sports and outdoor activities in Indonesia, ask for instance if surfing, scuba diving, diving, rafting, hiking, jet-skiing or paragliding are included.

What is the motorbike situation?
Motorbikes are a major cause of accidents for foreigners in Indonesia. Be careful as almost all insurers require a valid international license for the driver (even if you are a passenger). A specific motorbike license is also required for vehicle with more than 150cc. If you were drunk, high or not wearing a helmet at the time of your accident, you can also say good-bye to any potential claims.

What if you hurt someone?
Check if you can get reimbursement for third party damages.

The website of WorldNomads provides a lot of great tips to help you choose the right insurance. You can also make a simulation for your trip so you'll know exactly how much it will cost you and how long you will be protected. Don't forget to read the fine print very carefully to make sure you won't have any unexpected surprise.

How to save money on travel insurance?
The companies I've mentioned before are quite affordable. You'll only pay a few dollars per day for coverage. You can try to make a test on WorldNomads to see how much you will pay depending on your age, your country of origin, and the number of people you want to protect.

Click to get a a travel insurance quote from WorldNomads

If the amount is really to big for you, there are a few ways to lower the price even more:

Buy longer
This need some commitment, but naturally the longer you purchase, the cheaper it get. I made a test on WorldNomads for myself and got the following:

• 7 days travel insurance to Indonesia (for a French): 26.70 euros (3.8 euros per day)
• 4 weeks travel insurance to Indonesia (for a French): 93 euros (3.3 euros per day)
• 365 days travel insurance to Indonesia (for a French): 804.30 euros (2.2 euros per day)

Make your own simulation here: Quote from WorldNomads.

Buy for several people at once
If you travel with your girlfriend or your family, you should choose the same reputed company for everybody.

Don't insure flights and valuables
This is what I do. Considering I travel alone with cheap flight tickets, last minute hotels bookings and few valuables, I don't really care about getting reimbursements on those things. The only thing I care about is not jeopardizing my whole life with an accident I can't afford to have.

Choose high deductibles and excess
Your insurance deductible and your excess are minimum amounts your insurance will charge you on any claims, not matter what. If your deductible for an accident is 1,000$, the insurance will reimburse you any medical expenses above 1,000$.

The philosophy of choosing a high deductible is the same as the previous point: It is for people who only want help if they are in big trouble. Having to pay 1,000$ from your own pocket sucks, but you can always find the money.

Don't buy it from your airline
When you book a flight, your airline or your tour operator will offer you to buy an insurance. Those are usually pretty bad deals and the prices are not interesting.

Compare
You can use Insure My Trip to search for the best deals. Be careful with cheap insurance companies though. If they can give a very cheap price, it probably means they don't reimburse much. You cannot have it all.

Rely on your credit card insurance only

This is possible but you must know the limitations of this strategy. In general, when you pay your trip with a classic Visa or Mastercard, you get 3 months of insurance with maximum reimbursement of less than 15,000$ (please check again with your banker to be sure). This ceiling is really too low in my opinion. You also have a lot of restrictions on what you can claim as well as high deductibles.

What insurance do you use?
This article would be greatly improved with your input. Which insurance did you choose for traveling to Indonesia? Did you succeed in making claims? If you are an expat, do you have a health insurance? Do you recommend it?

Personally, I have an expat insurance company that only insure French nationals. The name is CFE, if you are French and need more information about it you can email me thibaud@jakarta100bars.com. I pay 100 euros per month and I've made 2 claims that went well. The main one was for a gallbladder infection that kept me a week in Kasih Ibu hospital in Denpasar. The total bill was 7,000$ for 8 days and I had 5,000$ reimbursed.

7 Reasons Thailand Attracts More Tourists Than Indonesia

Thailand welcomed over 29 million foreign visitors in 2015 while Indonesia only had 10.41 million. Almost 3 times less. 

This is quite an abnormal situation considering Indonesia is a much larger country with better beaches, better surfing, better diving and better hiking. The cultural and natural diversity of Indonesia is unmatched in Southeast Asia. There are 8 UNESCO World Heritage Sites in Indonesia and only 5 in Thailand. If only Indonesian cuisine was more famous, it could compete with Thai food (similar Malaysian food was named 6th Best in the World by CNN). Indonesians are just as nice as Thai people, and they speak English better. 

Despite this potential, why are there so few foreigners visiting Indonesia compared to Thailand? 

1) Bad Location and Less Flights

As with any businesses, location is always the main factor to explain success or failure. Thailand is closer from China, from the rest of Asia and from Europe. Unsurprisingly, it receives more visitors from all the countries in those areas.

For a European, a Chinese, an Indian, a Japanese or a Russian, it is always shorter, cheaper and easier to go to Thailand.

Logically, the only two nations that send more tourists to Indonesia are Singapore and Australia, both its direct neighbors. Unfortunately they are dwarf countries with a combined population of less than 30 million people.

Being wider, Indonesia is more difficult to visit. You often need to take an additional internal flight, making a trip even more long and costly. For instance, the famous diving site of Raja Ampat in Papua is 4 hours and 300$ away from Jakarta.

China

The impact of China alone is crucial. In 2015, Thailand received over 7,9 million Chinese visitors, 27,5% of all their tourists. In the meantime, Indonesia had only about a million.

The number of direct flights from China to Thailand is impressive. There are over 30 cities in China with direct flights, arriving to 8 Thai destinations (Bangkok, Chiang Mai, Phuket, Chiang Rai, Pattaya, Koh Samui, Krabi, Surat Thani). Direct flights from China to Indonesia are much more rare: Only Jakarta, Bali and Manado have some, from only 10 Chinese cities.

The prices from China to Thailand are much lower as well, not only because it is shorter, but also because there are a few low-cost airlines operating on these routes (Thai Smile, Air Asia, Spring Airlines).

A Chinese can get a return ticket to Thailand for less than 100$, but he'll need to pay at least $400 if he wants to travel to Indonesia.

2) Poor Infrastructure

Flights and location cannot explain everything. Americans are just as far from Thailand as they are from Indonesia: Both destinations require a 24-hour flight that costs about 500$ one way. Yet, in 2014, Indonesia was visited by 251,000 Americans and Thailand by 763,000.

Reading the 2015 Global Tourism and Travel Report, the major difference between the two countries resides in the "Tourist Service Infrastructure" (number of hotel rooms, car rental companies, ATMs, etc). On this criteria, Thailand ranks 21st globally and Indonesia 101st.

With a GDP Per Capita about 30% lower than Thailand, Indonesia is also a few years behind Thailand in terms of economic development. Jakarta is still waiting for its first mass transportation system whereas Bangkok has had one since 1999. Bangkok has cheap and world-class hospitals while in Bali any serious accident requires medical evacuation. Modern highways connect Thai cities, while in Java, it takes an hour to drive 30 kilometers.

The fact is, it is more comfortable and easier to travel within Thailand compared with Indonesia. If you've been to both, you probably know what I mean.

3) Mismanagement
As I see it, the Indonesian government just does not care about its citizens or visitors: It does not care to repair the road or to clean the streets, it does not care to create parks or proper sidewalks, it does not care to improve education or hospitals. It only seems to care about making money by awarding contracts and privileges.

The result is chaotic: Roads in Indonesia are clogged with traffic, even in small towns. You cannot walk safely and public transport is dreadful. Wherever you go, you see huge piles of trash, even in remote rural location.

It is not a money issue: In Senopati, one of the richest neighborhoods in Jakarta, sidewalks are broken as well and streets are dirty. The local government in South Bali is really wealthy, yet they need the help of Coca-Cola to clean the beaches. Tackling issues is just not their main priority.

Some backpackers may find Indonesia more adventurous and fun to visit, but for most people, a holiday should be simple, relaxing and safe. Thailand wins hands-down on these three points.

4) Negative Perception

According to a 2015 survey, 43% of Australians had a positive image of Indonesia and 59% a positive image of Thailand. Their main concern was a perceived lack of stability, safety and cleanliness.

In international news, Indonesia rarely makes headlines unless there is an earthquake, a tsunami, a volcano erupting, a terrorist attack, a giant forest fire, or a foreigner being executed. You'll also hear about Indonesia in the bizarre news section: The Man Tree, The Sex Doll Fallen From Heaven, the 2-Year Old Smoking child, the World's Fattest Kid, etc.

Local politicians are populists who don't care about the image they give abroad as long as they get votes at home. It is common for them to boost their popularity by stirring nationalist sentiment, even if it means bullying another country. The Vice President Yusuf Kalla's is a good example of these methods. He was the one who initiated the campaign to pay back the tsunami relief aid before the Bali 9 execution. He was the one who declared that Singapore should be thankful for 11 months of clean air, in the middle of the haze crisis. This gave such a disastrous image that some Indonesians wondered whether public officials should hire a PR agency.

Any effort to push forward sharia law will also get a fair amount of publicity: The proposed ban on alcohol, the threat to the LGBT community, the virginity tests, the criminalization of casual sex, the canning in Aceh or even the debates over whether it is allowed to wish "Merry Christmas" gave the impression that Indonesia is a borderline extremist country, which it is not.

In fact, when I say that I live in Jakarta, the first question people ask me is often: "Is it Muslim there?". I think the fact that Indonesia is a majority-Muslim country turns off some potential visitors who are afraid there will be too many restrictions. It is not surprising that the most popular destination in Indonesia is a majority-Hindu island.

Finally, I remember talking to a Malaysian friend a few years ago who told me that for many Chinese, Indonesia was not considered a safe country following the 1998 riots in which hundreds lost their lives. The recent beating of a young Indonesian Chinese will certainly not improve the situation.

5) Protectionism

Like most country on earth, Indonesia and Thailand are both suspicious of foreigners. Thailand seems more pragmatic though, and its laws are more relaxed when it comes to visa requirements, imports, ease of doing business, and property rights.

Even though things I've changed in Thailand in the past few years, it is still less of a hassle for a foreigner to work, to retire, or to start a business there. As expats open cafés, restaurants, hotels, travel agencies or attractions, they also contribute to the development of tourism.

Last year, a crew of foreign photographers and models were arrested and deported for doing a photoshoot in Bali. Even though they didn't have working permit, they were actually promoting the island through their pictures so I'm wondering about the logic of spending 3 days to chase them. The crew probably regretted they didn't go to Thailand instead.

6) Higher Prices

According to official figures, Indonesia is supposed to be cheaper than Thailand but I find this statement to be far from the truth. In reality, I know Indonesians who fly to Bangkok just to do some shopping or to get medical treatment.

The quality of services and products you buy in Thailand is often superior, for instance for Western food, health, clothes, electronics, hotels, fruits and vegetables, alcohol and transportation. The main reasons for this, I believe, are the lack of competition and the import restrictions mentioned above.

The high price of alcohol is a deal-breaker for many tourists. A glass of the most basic wine can easily cost 15$ ; a can of beer 4$ ; a cocktail in a regular nightclub 10$. I know several people who prefer Thailand only because of this (yes my friends are drunkards).

High import taxes on gourmet food also hinder the development of tourism. Few visitors want to eat Indonesian-style during their whole trip: They want cheese, bread, steaks, deli, a variety of fruits, etc. All of these are more expensive in Indonesia than in Thailand.

7) Less Sex Tourism

Even though Indonesia has a naughty nightlife (read Sex Tourism in Bali), it is nothing compared to Thailand. In Jakarta, there are only 6-7 prostitute bars catering to foreigners (double that number if I include Little Tokyo). In Bangkok, there are probably several hundreds and just as many in Pattaya and Patong.

I don't have official data about the number of sex tourists traveling to Thailand every year, but I'm sure that it accounts for a significative portion of visitors.