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Indonesia launches $7 billion loan guarantee scheme for 'priority' companies

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Indonesia has launched a 100 trillion rupiah ($6.92 billion) loan guarantee scheme targeting businesses in priority sectors as part of efforts to help companies stay afloat during the coronavirus pandemic, the finance minister said.

FILE PHOTO: General view of a business district during sunset in Jakarta, Indonesia, November 5, 2019. REUTERS/Willy Kurniawan

“We hope the risk appetite from banks as well as companies can be restored and thus result in optimism to conduct activities,” Finance Minister Sri Mulyani Indrawati told a streamed press conference on Wednesday, noting banks had been cautious giving out loans despite having ample liquidity. The loan guarantee scheme is an expansion of a previously announced initiative to help small businesses recover from the impact of the pandemic.

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