When you're a government looking after a large population ~70 million, then you need metrics that are simple and easy for people to understand and are reasonably accurate in most cases. BMI achieves that, of course there will be outliers but there will be for any system you use. It's not credible for every GP to do body fat measurements, fitness tests etc etc. hop on a scale, let me measure your height, stick it in a table, bosh. Here is a reasonable estimate of whether you are over/underweight, or just fine. Of course it's not perfect, but for the majority, it'll do and it's a reasonable indicator.