JAKARTA, Indonesia, April 25, 2022 /PRNewswire/ — G20 members have urged the World Bank to immediately prepare for the establishment of the Financial Intermediary Fund (FIF), Finance Minister Sri Mulyani Indrawati stated.
FIF should be formed immediately in the framework of pandemic preparedness and response (PPR) in the future, the minister emphasized.
“The (G20) presidency concluded that the World Bank should start exploring the process for developing and establishing FIF,” Indrawati remarked at the second meeting of the G20 Finance Ministers and Central Banks Governors (FMCBG) press conference here on Thursday.
According to the minister, G20 members view FIF as being the most effective choice for new financial mechanisms, especially in preparing for other potential pandemics in future.
Indrawati believes this is because the establishment of FIF is viewed as being able to overcome the financing gap in the health sector as what had occurred during the current COVID-19 pandemic.
“Most (G20) members agree on the need for a new financial mechanism dedicated to addressing the financing gap in PPR,” she stated.
Hence, she explained that G20 members hope that the establishment of FIF would mitigate the health financing needs in line with the World Health Organization’s (WHO’s) expectations.
Moreover, G20 members called on the World Bank to explore discussions on the governance and operational regulations of FIF by involving the WHO.
“There is widespread support for WHO and the World Bank regarding the assessment of significant financing gaps that need to be addressed,” Indrawati remarked.
Earlier, on April 1, the Indonesian finance and health ministries resumed the third G20 Joint Finance and Health Task Force (JFHTF).
At the meeting, JFHTF co-chair Wempi Saputra invited G20 member countries to draw up a financing action plan for pandemic preparedness and response (PPR).
“The third JFHTF meeting is an important step for all member countries in drafting the financing strategies for prevention, preparedness, and response to the pandemic or PPR,” Saputra stated.
Meanwhile, one of the main agendas of Indonesia’s G20 Presidency is global health architecture.