Indonesia will receive around US$7 billion in loans from World Bank, Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) to Finance the Country’s Fights against COVID-19.

Bank Indonesia (BI) Governor Perry Warjiyo said on Tuesday that the funds would be used to finance the country’s widening budget deficit of 5.07 percent of gross domestic product (GDP) to prevent a greater health crisis and economic meltdown from the COVID-19 outbreak. He, however, did not unveil the details of the planned loan.

“The AIIB, ADB and World Bank planned on around $7 billion in loans during an investor teleconference. We will maximise it,” Perry told House of Representatives Commission XI overseeing financial affairs. “The Finance Ministry has also said that it will maximise the Government’s Budget.”

Indonesian President Joko Widodo announced additional State spending worth Rp 405.1 trillion to finance Indonesia’s battle against the novel coronavirus pandemic.

The new allocation will be used specifically for health care, the social welfare safety net & business recovery programs. In funding the extra budget, the government has resorted to debt issuance’s, international institution loans and state budget reallocation.