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.

The Indonesian Finance Minister will use the loan to support the Indonesian budget in getting Indonesia out of recession. Source: Photograph by World Bank Photo Collection/Creative Commons.

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.

Listen to SBS Indonesian every Monday, Wednesday, Friday and Sunday at 3 pm. Follow us on Facebook and catch us on podcasts.

And you can keep abreast of the latest information about the corona virus in your language at sbs.com.au/coronavirus

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