G20 Finance Ministers and Health Ministers Agree to Support Financial Intermediary Fund for Pandemic PPR

Yogyakarta, June 21st, 2022 – The Ministry of Health and the Ministry of Finance of the Republic of Indonesia held the 1st G20 Joint Finance and Health Ministers’ Meeting (JFHMM) under the Indonesian G20 Presidency on a hybrid basis on June 21st, 2022. Minister of Health H.E. Budi Gunadi Sadikin and Minister of Finance H.E. Sri Mulyani Indrawati chair the Meeting’s session.

Attended by G20 members, invitees, and international organizations (IOs), JFHMM aimed to seek guidance from the G20 Finance and Health Ministers on some progress achieved by the Joint Finance and Health Task Force (JFHTF), among others: i) A Financial Intermediary Fund (FIF) for Pandemic Preparedness, Prevention, and Response (PPR); and ii) Developing Finance and Health coordination arrangements for pandemic preparedness, prevention, and response (PPR). The result from the JFHMM discussion today will serve as a basis for discussions at the next Finance Ministers and Central Bank Governors’ (FMCBG) Meeting next month and to be followed up at the next JFHTF meeting.

In October 2021, G20 Leaders agreed that financing for pandemic PPR has to become adequate, more sustainable, and better coordinated by exploring new financing mechanisms. As mandated by G20 Leaders, the JFHTF reported to the 1st JFHMM under the Indonesian G20 Presidency. A Finance & Health Coordination Platform for Pandemic PPR Financing (Coordination Platform) can serve this purpose and provide valuable insights on the optimal allocation of financing resources for pandemic PPR. The G20 Finance and Health Ministers expressed support for a standing, scalable G20 collaboration model that can be gradually and selectively broaden beyond the G20 membership.

On the new financing mechanism, most Finance and Health Ministers agreed on the need for a new multilateral financing mechanism dedicated to addressing pandemic PPR financing gaps. Members welcomed the recent progress in establishing a Financial Intermediary Fund (FIF) housed at the World Bank, and will continue to discuss the governance and operational arrangement of the FIF ahead of the G20 Leaders potentially endorsing the FIF at their Summit in November.

In line with President Joko Widodo’s direction, Indonesia as the G20 Presidency prioritizes the global health sector agenda. In this context, Indonesia, as G20 Presidency committed to delivering concrete deliverables that supports and contributes to the FIF establishment proposal. Minister Sri Mulyani Indrawati, in her remarks, stated, “I am pleased to announce a commitment of almost USD 1.1 billion has been secured for the Financial Intermediary Fund for pandemic prevention, preparedness and response.” Minister Mulyani also reminded about the spirit of inclusiveness in handling the global pandemic. “Of utmost importance is inclusivity so that our efforts are joined up between Finance and Health Ministries in both developed and developing countries. Only then, can we be effectively prepared to tackle the next global pandemic together.” said Minister Mulyani. “I would like to acknowledge the central role of the WHO in fighting pandemics, and the importance of including the voice of developing countries in our institutional arrangements to create the most effective system for pandemic prevention and response.” Minister Mulyani affirmed.

On the broader issue of PPR coordination arrangements, Members generally agreed on the need for enhanced coordination between Finance and Health Ministries to be better prepared for future pandemics. Members are looking forward to further deliberations on the coordination arrangement between Finance and Health.

In line with the Minister of Finance, Minister Budi Gunadi Sadikin mentioned, “Since its establishment, the G20 Joint Finance-Health Task Force has made progress in carrying out its mandate and promoting collective action to respond to the pandemic and contribute towards a stronger Global Health Architecture. I am confident that together, we will achieve concrete results by October, which includes the establishment of the FIF and coordinating platform collaboration.”

Minister Budi emphasized the distinctive aim of the FIF, which is to improve pandemic prevention, preparedness, and response globally. And the crucial next step is to define the investment priorities of the FIF.

“Health is like money, we never have a true idea of its value until we lose it. This pandemic has awakened us to the importance of both health and the economy, as well as the interdependence between the two. Today marks important progress of a stronger synergy between the finance and health sectors to prevent, prepare, and respond to future pandemics. Let us continue this crucial partnership to create health and prosperity for all.”

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