Indonesia gets 1 billion USD in loans for COVID-19 response

Medical staff check a room prepared for COVID-19 patients at Pertamina Jaya Hospital in Cempaka Putih, Jakarta (Photo: thejakartapost.com)

The Asian Infrastructure Investment Bank (AIIB) announced on June 23 that it and other banks had approved loans totalling 1 billion USD loan to help strengthen Indonesia’s health and economic responses to the COVID-19 crisis.

AIIB’s first loan for Indonesia, totaling 750 million USD and co-financed with the Asian Development Bank (ADB), will be used for a project to support Indonesia’s economic recovery programme, including aid for small and medium businesses and vulnerable households.

Another loan worth 250 million USD in partnership with the World Bank is intended for a separate programme to strengthen the public healthcare response to the crisis, including testing, prevention and treatment of the virus, and to boost hospital readiness.

Speaking at a meeting on June 23, Indonesian Deputy Finance Minister Suahasil Nazara appreciated AIIB for the quick response and flexibility when it comes to the urgent needs of member countries during the health and economic crises.

These loans are important for Indonesia to support health care and expand social assistance programmes for the poor and vulnerable people to reduce the adverse social and economic impacts of COVID-19, he said. /.

VNA