Recognising the Comprehensive Strategic Partnership and the strong friendship between Australia and Indonesia, the Australian Government will provide an AUD1.5 billion (USD1.09 billion) loan to Indonesia, repayable over 15 years.
This loan supports the Asian Development Bank (ADB)-led covid-19 Active Response and Expenditure Support Program.
"Covid-19 poses an unprecedented challenge to the Indo-Pacific and the world. Both our nations have been affected by this extraordinary crisis as containment measures and uncertainty have depressed global economic activity and international trade," said the ministers in a joint statement on Thursday.
The loan will be used to support Indonesia’s budget financing for 2020 which is focused on managing the covid-19 crisis and economic recovery programmes.
"The provision of the Australian Government loan to Indonesia reflects the extraordinary times which we all must face together and is in recognition of Indonesia’s record of sound fiscal management which has allowed the Government to respond to covid-19 health crisis," they stated.