The Federal Republic of Germany and the Republic of Indonesia, with support from the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM), have signed a major agreement under the Debt2Health initiative.
Through this agreement, €75 million (US$80.77 million) of Indonesia's debt will be converted into strategic investments in public health. The initial agreement for this conversion was reached in April this year and has now been formalized in a formal agreement.
As the largest Debt2Health program to date, this initiative is expected to improve Indonesia's capacity to fight infectious diseases while strengthening its health systems.
The funds from the debt conversion will be used to improve health services for TB, HIV and hepatitis, and to strengthen Indonesia's overall health system. This program is designed to mobilize additional resources for countries that benefit from the Global Fund, including Indonesia.
Turning Debt into Health Investment
The Global Fund's Debt2Health initiative provides an innovative financing mechanism that enables countries to transform debt into strategic investments in national health priorities.
For Indonesia, this investment plays a critical role in supporting the transition from international to domestic funding, particularly for malaria control. The converted funds will be used to strengthen health systems, promote local drug production, improve diagnostic capacity, and build a more resilient health infrastructure across the country.
In addition, special attention will be given to tuberculosis (TB) control, as Indonesia has the second highest TB burden in the world. Investments will be used to procure essential diagnostic tools and medicines, strengthen screening capacity, and expand community-based programs and public-private partnerships for TB prevention and care.
Debt2Health: Bridging the Health Gap
Germany, the second largest European donor to the Global Fund and the fourth largest public donor worldwide, has been a key supporter of the Debt2Health mechanism since its inception in 2007. As a pioneer of the concept, Germany has participated in 10 out of 14 Debt2Health transactions, making a significant contribution to closing health financing gaps in several countries.
To date, the Debt2Health mechanism has generated nearly $330 million for health programs through agreements with countries such as Germany, Australia and Spain, benefiting countries including Indonesia, Cameroon, Egypt, Ethiopia, Pakistan and Sri Lanka.
The Global Fund remains committed to developing innovative financing solutions that complement government spending, strengthen domestic health financing and maximize impact in the fight against AIDS, TB and malaria.
