05/14/2023 | Press release | Distributed by Public on 05/15/2023 00:20
Jakarta, Indonesia, May 15, 2023-A new partnershipwill help support health care organizations and companies in Indonesia, with IFC and the country's Ministry of Health (MoH) collaborating to launch the Indonesian Health Sector Growth Program. The aim is to ramp up efforts to the resilience and growth of the health care sector, while also attracting foreign investment and expertise to drive the economy post-pandemic.
As part of a memorandum of understanding (MoU), the Ministry of Health and IFC will explore opportunities to strengthen private health sector project development in Indonesia. To offer early-stage support to organizations in the pharmaceutical, vaccine, and medical technology sectors, IFC will support Indonesian companies through advisory services and financing. In addition, it will work with reputed international health care organizations to facilitate foreign direct investment.
"Collaboration between the public and private sector is crucial in building pandemic preparedness," said Indonesian Health Minister Budi G. Sadikin. "I hope that the COVID-19 pandemic can serve as lessons that spur pandemic preparedness. This important initiative is expected to encourage the national pharmaceutical and medical devices industry to continue its innovation and work in accelerating the production of domestic medical devices and medicines."
The COVID-19 pandemic refocused our attention on health systems and the urgent need for accessible and affordable health care across the value chain. Given the substantial need for investment, especially in developing countries, public and private sectors need to work together to meet the soaring demand for quality and affordable health care. In this context, IFC's partnership with the health ministry will help address some of the challenges deterring the growth of Indonesia's health sector.
The MoU was signed by L. Rizka Andalusia, Director General Pharmaceutical & Medical Devices, Indonesian MoH, and Kim-See Lim, IFC's Regional Director for East Asia and the Pacific. Witnesses included Health Minister Budi Gunadi Sadikin and IFC's Managing Director Makhtar Diop.
"Increasing the competitiveness of the domestic pharmaceutical and medical device industry is a step forward for the government to realize health system resilience and independence, which will ultimately improve Indonesia's competitiveness," said L. Rizka Andalusia,Director General Pharmaceutical & Medical Devices, Indonesian MoH. "We look forward to strengthening international solidarity and cooperation as our effort to build national resilience in pharma and medical devices."
"This well-timed partnership builds on IFC's commitment to support Indonesia's resolve to transform the health care sector by boosting private sector participation, which has a key role to play," said Kim-See Lim, IFC's Regional Director for East Asia and the Pacific. "The collaboration marks a new chapter in terms of public-private cooperation, which is vital to increasing access to health care and critical to the country's growth trajectory. We are confident IFC's support will contribute to a stronger health care ecosystem in Indonesia, playing a catalytic role and ensuring future resilience."
Amid the pandemic-the impacts of which continue to reverberate-IFC stepped up its efforts to address the systematic health care vulnerabilities exposed by COVID-19, as well as the market gaps, by improving local manufacturing and distribution capacity and supporting public-private partnership for a resilient health system.
In July 2020, IFC launched a $4-billion financing platform, the Global Health Platform, that invests in companies to increase the supply of critical medical equipment and services in developing countries, including vaccines. Since its launch, the platform has supported 18 projects, totaling $1.9 billion.
IFC-a member of the World Bank Group-is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
Ministry of Health of the Republic of Indonesia (MoH) - a ministry managing government affairs in the health sector responsible for public health affairs, with a mission to improve and protect public health, empower communities (including the private sector and civil society), and address the equitable availability of quality health efforts and required resources in Indonesia, and increasing the resilience of the domestic pharmaceutical and medical device sector, in line with Indonesian Health System Transformation. For more information, visit www.kemkes.go.id.