Why is Australia’s $1.5 billion loan to Indonesia, important to Australia and Indonesia?

Australia has announced that it will make a $ 1.5 billion loan to Indonesia. The loan is to help Indonesia through the time of COVID-19 and will be used to provide budget support.

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Although the loan is bilateral, it also sees Australia join an international effort fostered by the Asian Development Bank to help Indonesia manage COVID-19. These activities should benefit Indonesia. Dr Peter McCawley AM, former Dean of the Asian Development Bank suggests they are also extremely important to Australia.

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Australia and WHO are working together to support Indonesia’s response to the COVID-19 pandemic. Source: Photograph by Australian Embassy Jakarta / Creative Commons