Federal Republic of Germany gave a bilateral loans of EUR550 million (US$654.76 million) to help Indonesian economy from the impact of the COVID-19 pandemic - Photo by Germany Embassy for Indonesia

JAKARTA (TheInsiderStories) – Federal Republic of Germany gave a bilateral loans of EUR550 million (US$654.76 million) to help Indonesian economy from the impact of the COVID-19 pandemic, said the country’ embassy in this week. The loans cooperation was signed by the director general at the ministry of finance, Luky Alfirman, and head of sustainable economic development for East and South East Asia, Kreditanstalt für Wiederaufbau (KfW), Florian Sekinger.

In Nov. 12, Australian government and Indonesia signed a bilateral loans AUD1.5 billion (US$1.09 billion) to tackle the COVID-19 outbreak around the archipelago, said finance minister today. It comes after a decade the neighboring country’ aid to Indonesia has fallen by more than half, dropping from AUD515 million in the 2014 – 2015 financial year to AUD$255 million in 2020 – 2021.

“The Australia support that providing AUD$1.5 billion loans to Indonesia is the kind of support that we needs (to handle the COVID-19 pandemic),” said finance minister, Sri Mulyani Indrawati in a virtual conference.

In October, Japanese Prime Minister, Yoshihide Suga, provided a low-interest loans worth of JPY50 billion (US$474.15 million) to support Indonesia to strengthen the disaster mitigation capacity during the pandemic. Both leaders also agreed to bolster defense and economic ties at the bilateral meeting on Oct. 20. 

“Taking into account on the impact of the COVID-19 spread on the Indonesian economy, on this occasion, Japan has designated a loan as fiscal assistance of JPY50 billion to increase Indonesia’ disaster mitigation capacity,” said the prime minister during a joint press conference with Widodo at the Bogor Palace.

He stated, Japan will also encourage cooperation in developing health studies in Indonesia by providing medical goods and equipment. Under the Japan – Indonesia Economic Partnerships Agreement framework, the two leaders also agreed on Travel Corridor Arrangement for essential businesses and nurses as well as caregivers.

He also stated, on the the infrastructure projects, his country will support Indonesia, especially on the construction of Mass Rapid Transit, the Jakarta – Surabaya semi-fast train, Patimban Port, development in outer islands, and cooperation to increase the economic resilience.

Finance minister Sri Mulyani Indrawati said the 2020 State Budget deficit could widens to 6.27 percent of gross domestic product (GDP) followed the development of COVID-19 pandemic in Indonesia. Recently, she said the deficit 5.07 percent of GDP with values Rp852.90 trillion ($60.92 million).

She explained, the revised budget shortfall is estimating Rp1,028.5 trillion caused the government now set aside a total of Rp641.7 trillion for emergency response to the epidemic. The widening deficit was caused the projected of state revenue will contracted 13.6 percent from the initial targets Rp1,760.9 trillion to only Rp1,691.6 trillion amid the various tax incentives.

US$1: EUR0.84, JPY105.45, A$1.37

Written by Editorial Staff, Email: theinsiderstories@gmail.com