Finance

Australia loans $1.5 billion to Indonesia as part of response to coronavirus

Australia is providing a $1.5 billion loan to Indonesia in support of an international COVID-19 response program.

The loan, repayable over 15 years, will be used to support Indonesia’s budget financing for 2020.

The agreement recognises the comprehensive strategic partnership between the two countries, while supporting the Asian Development Bank-led COVID-19 response and expenditure support program.

In a joint statement, Australian Treasurer Josh Frydenberg and Indonesian Finance Minister Sri Mulyani Indrawati said COVID-19 was posing an unprecedented challenge to the Indo-Pacific and the world.

“Both our nations have been affected by this extraordinary crisis as containment measures and uncertainty have depressed global economic activity and international trade,” they said.

Australia has entered into a $1.5 billion, 15-year loan to Indonesia to assist its neighbour’s response to the coronavirus pandemic. Credit: Sam Aitken/7NEWS Digital

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