Conference Report
Third National Forum on Health Philanthropy
Yogyakarta, Indonesia, 15-16 November 2022
Health Financing in Recovery Phase during COVID-19 Pandemic:
What is the Role of Philanthropy?
Introduction
The Center for Health Policy and Management (PKMK) Faculty of Medicine, Public Health, and Nursing (FK-KMK) Universitas Gadjah Mada University supported by the International Pharmaceutical Manufacturers Group (IPMG) held the Third National Forum on Health Philanthropy. A total of 120 people attended the conference via Zoom Meeting Application and YouTube live streaming, including government stakeholders, policymakers, philanthropic organizations, researchers/ academics, postgraduate students, and media.
Proceedings
Opening Session
The conference commenced with an introduction by Prof. Trisnantoro, a Professor of FK-KMK UGM and the Health Minister’s Special Staff for Drug and Medical Device Resilience. Laksono explained the need for a sustainable and equitable financing scheme to strengthen the health system, primarily to respond to the pandemic. Philanthropy has a potential role through two types of fundraising: crowdfunding (by the community) and conglomerate types, where a large amount of rupiah is contributed by high-net-worth individuals.
Furthermore, the Dean of FK-KMK UGM, Dr. Yodi Mahendradhata, opened the activity by explaining readiness for the next pandemic by learning from handling the COVID-19 pandemic. One of the lessons learned is the importance of philanthropy through the spirit of mutual cooperation and increased solidarity. Philanthropy plays a significant role in complementing the presence of government programs.
First Day
Session 1 – Overview of Health Philanthropy in the Era of National Health Insurance
Dr. Yodi Mahendradhata opened the first session as a moderator, with keynote speaker Dr. Lucia Rizka Andalucia as a Head of the Health Policy and Development Agency, Ministry of Health. Lucia explained that philanthropy has a significant role in handling pandemics and strengthening the health system. Philanthropy has also contributed to creating a Financial Intermediary Fund with 15 G20 countries in the context of better preparation, prevention, and response to pandemics. In addition, the government plans to set up a special forum for managing budgets originating from philanthropy.
The second speaker, Eddy Henry, the Head of Early Childhood Education and Development of the Tanoto Foundation, explained Indonesia’s philanthropy system’s implementation. The Tanoto Foundation, a family-based philanthropic organization founded in 1981, creates impact by focusing on results based on scientific evidence and forging partnerships. Eddy also revealed that philanthropy has great opportunities, including aligning government programs, funding catalysts, implementing incentives, and establishing ecosystems.
In this session, two discussion panelists were Untung Suseno Sutarjo as the Main Expert Policy Analyst Functional Officer and Dr. M. Ramadhan as a member of the Association of Indonesian Hospitals (PERSI).
Untung explained that the burden on health services was increasing, and some programs were hampered due to limited resources during the COVID-19 pandemic. Therefore, philanthropy is urgently needed, especially in optimizing primary care and strengthening human resources and resilience. Against this background, of course, sustainable health financing is necessary. An important point in ensuring the sustainability of health financing is credibility, which is built through transparent, effective, and efficient financial management.
Ramadhan explained the condition of health services during the COVID-19 pandemic, where there was a shortage of health support facilities and equipment in various hospitals in Indonesia. Ramadhan as the PERSI representative is grateful because philanthropy may help to optimize healthcare and financing facilities. Ramadhan also hopes that more discussion forums will be held between health service providers with philanthropy to support strengthening a sustainable health system.
Session 2 – Health Philanthropy in Business Development’s Point of View
Dr. Martina Sinta Kristanti moderated the second session with three speakers, Gusman Yahya from the Indonesian Philanthropy Association, Dini Indrawati Septiani from the Asian Venture Philanthropy Network (AVPN), and Inge Sanitasia Kusuma from the International Pharmaceutical Manufacturers Group (IPMG).
Gusman explained the trend of philanthropic funding, which has now developed from a tradition of giving/ assisting with a social investment that focuses on sustainability. “We may see the role of philanthropy during the recovery period from the COVID-19 pandemic, including strengthening the institutional capacity and network, developing innovative funding, and collective action.” Gusman also added that philanthropic funds could be a catalyst to attract and enable investment in the private sector as de-risking funds.
The second speaker explained philanthropic networks and their application in the health sector. AVPN is a network with members from various backgrounds and capacities that aim to become an ecosystem [builder] to bring programs with a sustainable impact. AVPN can catalyze and support unlimited funding for its members. This funding also includes programs in the health sector including optimizing primary health services, COVID-19 recovery and resilience, maternal and infant health, and child health and nutrition.
The third speaker explained “Philanthropy to Support Logistical Resilience”. IPMG reports on several programs in handling COVID-19 that focus on internal impacts in the form of improving the welfare and health of employees and their families, external impacts in the form of contributions to the government and society through donations and health system support, as well as logistical resilience by ensuring the continuous availability of drugs and vaccines. Inge added that health philanthropy is the pharmaceutical industry’s commitment as part of the corporate sustainability program. Philanthropy plays a role in building and increasing the capabilities of health workers and the community toward improving the national health system. Intersectoral strategic partnerships are needed within and between countries to accelerate the recovery phase and national pandemic preparedness plans.
Second Day
Session 1 – Implementation of Health Philanthropy in the Community
As the Head of the Public Health Division of PKMK FK-KMK UGM, Shita Listya Dewi moderated the first session on the second day.
The first speaker, Yeni Purnamasari, a General Manager of Health for Dompet Dhuafa, explained human empowerment efforts during the COVID-19 pandemic. Dompet Dhuafa compiled the C4 Program (Crisis Center Cekal Corona/ center for the crisis to block COVID-19) in 2020-2021. This program includes self-isolation and nutritional support, logistical assistance and hygiene kits, ambulance services, Dompet Dhuafa volunteer action, joint command post-COVID-19 crisis center, and area block Corona. Apart from health issues, Dompet Dhuafa also helps deal with the impact of the pandemic on the education sector which is implemented with scholarships for affected students.
The second speaker, Gde Yulian, a researcher and consultant for PKMK FK-KMK UGM said that handling the COVID-19 pandemic by philanthropic organizations primarily focuses on the response phase and has not touched much on the rehabilitation phase. To support disaster recovery, organizations should have primary data for contingency plan, be more inclusive to the health system transformation, be familiar with rapid-health and damage-loss assessment or post-disaster need assessment, and interoperable and accommodative to the external resources mobilization.
Dr. Wuri Handayani as the third speaker, considered that resource mobility in the form of social capital could be an alternative to dealing with COVID-19 and its impacts. Wuri and several figures (one of them is Dr. Rimawan Pradiptyo) founded SONJO to work on this. SONJO’s activities include distributing aid, developing a shelter database, SONJO Husada Tangguh, or collaborating with donors to support shelters and volunteer activities, hospice vaccination, and various programs to strengthen the community’s economy.
Session 2 – Hopes for Health Philanthropy in the Future
As the Health Philanthropy Team Leader of the PKMK FK-KMK UGM, Dr. Jodi Visnu opened the second session, which presented three speakers.
The first speaker, Arifin Purwakananta, as Deputy of the Republic of Indonesia’s National Amil Zakat Agency (BAZNAS), he explained the results of BAZNAS research on the potential for national zakat, which reached IDR 327.6 trillion and made religious-based philanthropy the highest contributor in the study of the Indonesian Philanthropic Association (PFI). The magnitude of this potential is in line with the Charity Aid Foundation’s report, which identified Indonesia as the number one country for its level of generosity. Arifin added that efforts to deal with COVID-19 had made health the top five sectors with the highest contribution (17%) in PFI.
As the second speaker, the secretary of the PFI governing body, Hamid Abidin, explained efforts to strengthen the accountability of philanthropic organizations through external regulations by the government, internal by organizations, and education for donors. However, in its implementation, there are various problems, such as the number of regulations that are no longer relevant, restrictive and bureaucratic regulations, lack of supervision, and lack of incentives. To revise the regulation of Ministry of Social Affairs Republic of Indonesia (Permensos) No. 19 of 1961 concerning the Collection of Money and Goods (PUB) through Permensos No. 8 of 2021, which discusses that PUB can only be carried out through social organizations that are legal entities; the new Permensos still has many gaps when there are many influencers with their fundraising programs would participate during a disaster. Hamid also encourages giving appreciation from the government through tax incentives to encourage the motivation to donate.
The third speaker, Dr. Arif Yunianto from the Indonesian Directorate General of Taxes explained the potential and challenges of super tax deduction in the philanthropic sector. Basically, tax incentives can be given to taxpayers who carry out research and development and industries that carry out vocational education programs. Indonesia seems to have a difficult choice regarding super tax deductions. Existing mechanisms are still aimed at overseeing various programs. The hope is that in the future, a tax deduction can be realized to support philanthropy in the health sector.
Conclusion and Closing Statement
Dr. Jodi Visnu closed the conference by conveying several things. First, the COVID-19 pandemic has become an opportunity and a lesson for Indonesia regarding the importance of strengthening the global health architecture to ensure a reliable national, regional and global health system. Efforts to improve Indonesia’s health system are based on the pillars of health transformation with synergy and collaborative partnerships between the government and non-governmental organizations. Synergy and collaboration are needed so that every community gets the right to be healthy.
Partnership networks or donation chains can play a role in strengthening the financial system of health service organizations. For example, it has been proven that humanitarian donations by philanthropy significantly contribute to handling the COVID-19 pandemic, especially during the recovery phase. “We hope funding from the philanthropic sector will become capital for each country to strengthen capacity to anticipate future pandemics with a more effective strategy,” Jodi said.
