Despite projected declines in GDP, driven by self-imposed restrictions on economic activity during lockdowns designed to reduce the spread of COVID-19, healthcare spending will remain stable throughout this year and next, before returning to normal growth levels thereafter, said IHS Markit in the latest report - Photo: Special

JAKARTA (TheInsiderStories) – Indonesia get loan facilities US$250 million from various multilateral agencies for COVID-19 Emergency Response Project, World Bank announced today (05/28). The financing will help the country to response to the COVID-19 pandemic and strengthening the national systems for public health preparedness.

The financing from multiple partners, including $250 million in co-financing from the Asian Infrastructure and Investment Bank and $ 200 million in parallel financing from the Islamic Development Bank.

“We welcome our development partners’ efforts to provide coordinated financing and the World Bank’ collaboration with the Asian Infrastructure Investment Bank and the Islamic Development Bank on this program,” said finance minister, Sri Mulyani Indrawati in an official statement.

The financing will focus on strengthening key aspects of Indonesia’ emergency response to the COVID-19 outbreak, including equipping COVID-19 referral facilities under the health ministry, improving the capacity for intensive care and availability of personal protective equipment, strengthening the laboratory network and surveillance system, and supporting the development and use of protocols to ensure quality of care.

The program will also cover the entire country, and the primary beneficiaries will include patients visiting hospitals and health facilities—particularly the vulnerable and high-risk populations such as the elderly and those with chronic conditions—and healthcare providers.

“We are proud to support the government of Indonesia’ COVID-19 response and its efforts to minimize the health, economic and social impacts of the pandemic, which is critical to its continued efforts to reduce poverty and protect the country’s human capital,” said Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste.

On May 17, the World Bank approved two new projects totaling $700 million to help Indonesia to respond to the COVID-19 pandemic and to enhance its social protection system and strengthen the financial sector.

Indrawati revealed, the funds will support for various sectors to provide the necessary foundation which will enable further government actions to ensure the long-term recovery of the people and the economy. The first project approved is the $400 million Additional Financing for Social Assistance Reform Program.

The initial project approved three years ago has successfully supported the government’ flagship social assistance program—the Family Hope Program—to expand its coverage from six million to 10 million families, and to improve the program’ delivery systems and coordination with other social assistance programs.

It said, the ongoing pandemic has heavily affected the poor and vulnerable as well as informal workers. The additional financing will support a temporary emergency top-up benefit for the Family Hope Program’ 10 million beneficiaries to help them safeguard their livelihood. It will also support the ministry of social affairs to strengthen the capacity of its social protection system to scale up and provide timely protection to those affected by large-scale natural disasters and epidemic shocks in the future.

The Additional Financing for Social Assistance Reform Program will continue to support the strengthening of social assistances delivery systems and linking selected former beneficiaries with the new Social Entrepreneurship program to improve their business skills. Further, it will support Indonesia’ Social Registry to include additional poor and vulnerable households and expand the use of this registry in disaster response.

The second project is the $300 million COVID-19 Supplemental Financing for Indonesia’ First Financial Sector Reform Development Policy Loan. The initial development policy loan was approved in March 2020 to help increase the depth, efficiency and resilience of the financial sector.

This supplemental financing will help the government cover an unanticipated financial gap that has arisen due to the pandemic, and help address the COVID-19 crisis by supporting the real economy, including channeling funds to households and firms, while maintaining the resilience of the financial sector.

in Early April, the government has expanded the economic stimulus to Rp405.1 trillion ($27.01 billion) to overcome the virus outbreak in the archipelago. The government will finance the program from various funding, including multilateral loans.

US$1: Rp15,000

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