Australia has agreed to provide Indonesia with up to $1 billion in the form of a standby loan facility.
The loan would be drawn down should Indonesia be unable to raise sufficient funds at reasonable interest rates on global markets in the event of another downturn.
The World Bank, Asian Development Bank and the government of Japan are also contributing to the facility, which is available until June 30, 2014.
The federal budget papers released in Canberra on Tuesday noted the loan agreement would be signed before the end of June.
Any funds provided would be repaid in full with interest.
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