A new partnership between the International Finance Corporation (IFC) and the Ministry of Health (MoH) in Indonesia is set to drive the growth and resilience of the country’s health care sector.
The collaborative initiative, known as the Indonesian Health Sector Growth Program, aims to attract foreign investment and expertise while enhancing the capacity of health care organizations and companies.
Under a memorandum of understanding (MoU), the IFC and the MoH will explore opportunities to strengthen private health sector project development in Indonesia.
The IFC will provide advisory services and financing to early-stage organizations in the pharmaceutical, vaccine, and medical technology sectors, facilitating their growth.
Furthermore, the IFC will work with renowned international health care organizations to encourage foreign direct investment in the country.
Indonesian Health Minister Budi G. Sadikin emphasized the significance of public-private collaboration in building pandemic preparedness.
He expressed hope that the lessons learned from the COVID-19 pandemic would drive innovation and accelerate the production of domestic medical devices and medicines.
The COVID-19 crisis underscored the urgent need for accessible and affordable health care worldwide. In developing countries like Indonesia, where investment is particularly crucial, the collaboration between public and private sectors becomes essential in meeting the growing demand for quality health care.
The partnership between the MoH and the IFC aims to address some of the challenges hindering the growth of Indonesia’s health sector.
The MoU was signed by L. Rizka Andalusia, Director General of Pharmaceutical & Medical Devices at the Indonesian MoH, and Kim-See Lim, IFC’s Regional Director for East Asia and the Pacific. Witnesses to the signing included Health Minister Budi Gunadi Sadikin and IFC’s Managing Director Makhtar Diop.
L. Rizka Andalusia highlighted that enhancing the competitiveness of the domestic pharmaceutical and medical device industry would contribute to Indonesia’s health system resilience and independence, ultimately improving the country’s competitiveness.
Kim-See Lim, IFC’s Regional Director for East Asia and the Pacific, described the partnership as a crucial step in boosting private sector participation and increasing access to health care. Lim emphasized the significance of public-private cooperation in strengthening the health care ecosystem and ensuring future resilience in Indonesia.
IFC has been actively addressing the vulnerabilities exposed by the COVID-19 pandemic. The organization has focused on improving local manufacturing and distribution capacity and supporting public-private partnerships to build a resilient health system.
In July 2020, IFC launched the Global Health Platform, a $4-billion financing initiative that invests in companies to enhance the supply of critical medical equipment and services in developing countries, including vaccines. To date, the platform has supported 18 projects with a total investment of $1.9 billion.
The Indonesian Health Sector Growth Program, with the collaboration of the IFC and the MoH, promises to bolster the health care sector in Indonesia, attracting investment, and driving economic growth post-pandemic.
The partnership sets the stage for a stronger health care ecosystem and improved access to quality health services, ensuring the nation’s resilience in the face of future health challenges. – BusinessNewsAsia.com