Japan Will Free Birth Fees To Encourage Birth Rates

JAKARTA - The Japanese government is considering a major step towards overcoming the increasingly severe demographic crisis, namely making free the cost of giving birth free.

The move was proposed by a panel of experts as part of a national strategy to drive the declining birth rate over the past nearly a decade.

Reporting from the Japan Times page, in a proposal released Wednesday, May 15, the panel recommends that the government design a special system around fiscal year 2026 to make standard delivery costs free. The goal is clear, namely reducing financial burdens that are often an obstacle for young couples to have children.

Currently, the cost of childbirth in Japan is not included in the coverage of national health insurance. Although the government provides subsidies of up to 500 thousand yen or Rp56 million, this figure is not sufficient to cover the total cost of childbirth in almost half of cases.

Data collected from May 2023 to September 2024 shows that 45 percent of mothers still have to spend more. The cost of giving birth continues to increase. In the first half of 2024, the average cost of childbirth was recorded at 518 thousand yen or IDR 58 million, up significantly from 417 yen or IDR 47 million in 2012. This increase further burdened young families who had faced other economic challenges.

This plan continues the family support policy which will be announced in 2023, including subsidies for child care and other financial assistance. All of these policies aim to change the trend of birth rates that continue to decline.

According to data from the Japanese Ministry of Health, the number of births in 2024 only reached 720,988 babies, the lowest number since recording began in 1899. This is the ninth year in a row where the number of newborns continues to decline.

The Japanese government is now facing great pressure. With the elderly population continuing to grow and tax revenue investigating due to the declining number of working-age residents, the country's social security system is under serious pressure.

Free delivery costs can be an important step to reverse this trend, although of course it is not enough just that. However, this can be a strong signal that the government is serious about creating a more friendly environment for families and future generations.