Indonesia pledges 6.85 bln USD corporate loans to offset pandemic risks

Source: Xinhua| 2020-07-27 18:09:36|Editor: huaxia

JAKARTA, July 27 (Xinhua) -- Indonesia plans to guarantee working capital loans for private firms worth 100 trillion rupiahs (some 6.85 billion U.S. dollars) this year to help the firms withstand the novel coronavirus pandemic, a senior minister said on Monday.

Indonesian Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan noted that the stimulus package for the private companies would be launched this week.

"This week, the government will launch a program of loan guarantee. This indicates that firms are also part of the target of the government assistance," he said.

Minister Pandjaitan expounded that the package aimed at assisting companies dashed by the COVID-19 outbreak in the hope it would make their operations sustain and prevent them from laying off workers.

Adding to the plan, the government also expanded financial assistance valued at 11.5 trillion rupiahs (about 787.40 million U.S. dollars), in the banking sector and extended loans to provincial administrations to bolster efforts to recover the economy, Indonesian Finance Minister Sri Mulyani Indrawati said on Monday.

The funds would be placed in seven regional development banks, according to her.

The government has previously set aside a 30 trillion rupiahs (equal to 2.13 billion U.S. dollars) fund in four state banks to help them expand lending.

The Southeast Asian biggest economy has been scrambling to avoid a deep recession by accelerating the economy in the third quarter amid expectations that the economy would decelerate 3.5 to 5.1 percent in the second quarter.

The transmission of novel coronavirus remains afloat as of late in Indonesia. On Monday, the Health Ministry reported a 1,525 additional cases, bringing the total to 100,303 with 4,838 fatalities. Enditem