Impact Credit Solutions (ICS) has launched the Indonesia Resilience Fund (IRF), to support Indonesia’s healthcare system during the COVID-19 pandemic. The USD 40 million fund is supported by the U.S. International Development Finance Corporation (DFC), the U.S. Agency for International Development (USAID), the Australian Government Department of Foreign Affairs and Trade (DFAT), and private local and international investors. The IRF will provide funding to local partners which will enable them to finance hospitals, clinics, pharmacies and other small businesses.
COVID-19 has greatly impacted Indonesia, a country with more than 260 million people, and over 1,000,000 reported cases. The Indonesian government has provided medical and economic support, and the IRF will complement existing initiatives and provide financing to parts of the healthcare system that have been unable to access sufficient credit. With the support of DFC, USAID, and DFAT, the fund will offer loans at affordable rates. The partnership allows end-borrowers to both receive capital they need to run their businesses, while also building credit histories. The fund endeavors to help many end-borrowers continue to access affordable financing in the future. ICS will also apply a gender lens investment framework, co-developed by DFC and DFAT, to collect data and implement measures to promote gender equality through the IRF.
ICS CEO Reinier Musters said, “We are grateful for the opportunity to help our local partners contribute to the COVID-19 relief effort. Our partnerships with DFC, USAID, and DFAT will allow us to all do our part to help Indonesia through this pandemic and for years to come. This is a true opportunity to show the good that both finance and technology can do.”
Febe Rahellea, head of business development for ICS, added, “I see the effects of this crisis in Jakarta every day and it is clear that this is far from over. We believe the healthcare system still faces major challenges and hope we can help.”
Vice President of DFC’s Office of External Affairs and Head of Global Gender Equity Initiatives Algene Sajery said, “DFC is pleased to partner with USAID, DFAT, and ICS to support this innovative gender-lens investment vehicle that will provide critical access to credit for Indonesia’s health care sector that is currently grappling with the COVID-19 crisis. In the long term, the IRF will help strengthen Indonesia’s health system, and support the economic resiliency of women owned and other small businesses in the country.”
USAID Indonesia Mission Director Ryan Washburn said, “Clearly, the ongoing COVID-19 crisis has illustrated the dangers that unexpected shocks pose to health care systems, economies, healthcare workers, as well as patients and their families. USAID believes that our collaboration with ICS will strengthen the resilience of Indonesia’s health systems and help more Indonesians receive the healthcare they need to weather this pandemic and live longer, healthier lives.”