Indonesia offers guarantees to woo lenders, boost recovery as Covid-19 cases surge past 437,500

People wearing face masks walking past advertising at a mall in Jakarta on Sunday (Nov 8, 2020). - AFP

JAKARTA, Nov 8 (Reuters): Indonesia's government has announced that it would offer sovereign guarantees for loans on businesses and projects that can boost economic recovery, as it steps up efforts to bolster an economy battered by the Covid-19 (coronavirus) pandemic.

Despite having ample liquidity in the banking sector, the government has been struggling to spur loan growth due to a lack of appetite to expand businesses, while lenders are also keen to hedge risks amid uncertainty during the pandemic.