The agreement was signed on December 12, 2024, at the Ministry of Finance's office in Jakarta.
"The signing of this debt-to-health swap agreement marks an important step in the joint commitment of both governments to strengthen national health and support global efforts," the ministry's director general of budget financing and risk management, Suminto Sastrosuwito, said in a statement released on Wednesday.
He informed that the agreement signing was a follow-up to an in-principle agreement reached in April 2024, which was formalized through the official pact.
Under the agreement, debt will be converted into direct investment for public health programs jointly managed by the Global Fund and the Indonesian Health Ministry, Sastrosuwito informed.
According to the official, the debt swap was implemented under the Global Fund's Debt-to-Health (D2H) initiative, with Germany as the first partner in 2007.
The debt swap instrument was created to raise additional resources for Global Fund recipient countries such as Indonesia, he said.
"This is an example of how countries can work together, using innovative financial instruments to address global health challenges," he added.
Meanwhile, the German Ambassador to Indonesia, Ina Lepel, said that the debt conversion is a significant step in the long-standing and trust-based cooperation between Indonesia and Germany.
It could even help the new government achieve its goal of better public health, she added.
The agreement will also contribute to Indonesia's efforts to achieve the Sustainable Development Goals (SDGs) related to health, namely ending the spread of AIDS, tuberculosis, and malaria by 2030, as well as combating hepatitis and other infectious diseases.
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Translator: Imamatul Silfia, Resinta Sulistiyandari
Editor: Azis Kurmala
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