During the pandemic, effective and efficient health facilities and medical supply companies became more important than ever. However, in some areas, a lack of available commercial credit made it difficult for suppliers and clinics to keep medical supplies and services flowing. The United States is providing innovative financing to help address this challenge.
Indonesia’s ambitious universal health care scheme, one of the largest and most complex in the world, has made significant strides in recent years to improve its efficiency so that all Indonesians can receive the health care they need. But reimbursements from the central government to health facilities often take time, which can result in funding gaps that delay timely and adequate services.
Loans to Health Care and Transportation Providers
To help bridge the gap, the United States Agency for International Development (USAID), the United States International Development Finance Corporation (DFC), and Australia's Department of Foreign Affairs and Trade (DFAT) partnered with Impact Credit Solution (ICS) to mobilize a $40 million fund to provide short-term financing to Indonesia’s healthcare providers, clinics, and essential goods transportation companies. These short-term loans help companies maintain operations during the COVID-19 pandemic, which has made them more important than ever while stretching their financial duress. At the same time, the partnership invests in ways that advance gender equality given that Indonesia’s health sector employs mostly women.
Results
To date, the program has disbursed $25.9 million loans to 41,062 healthcare and essential goods delivery companies benefitting more than 1,750,000 patients. The financing will complement the Government of Indonesia’s ongoing efforts to ease the strain on the health sector and the economy caused by the COVID-19 pandemic.
Contact
Mispan Indarjo, USAID at mindarjo@usaid.govSolomon Stavis, DFC at solomon.stavis@dfc.govReinier Musters, ICS at reinier@impactcredit.solutions
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