Indonesia Awaits Official Communication on US Loan Suspension Issue

SEAToday.com, Jakarta - The Indonesian Ministry of Foreign Affairs (Kemlu) has stated that the government will only respond through official diplomatic channels regarding reports of the United States halting grants and loans, as announced by the White House.

"Indonesia will only provide a response based on official communication conveyed through diplomatic or other formal channels between the two governments," said Kemlu spokesperson Rolliansyah Soemirat in a written message received in Jakarta on Wednesday (Jan 29).

Rolliansyah emphasized that Indonesia will not speculate on any issue that remains a general statement from another government and is not specifically addressed to Indonesia.

According to Anadolu, the White House Office of Management and Budget has issued a directive to temporarily suspend all federal grants and loans, as stated in an internal memorandum sent on Monday.

"In the Fiscal Year 2024, out of nearly USD 10 trillion (IDR 162,346 trillion) spent by the federal government, more than USD 3 trillion (IDR 48,705 trillion) has been allocated for financial assistance, including grants and loans," the memorandum stated.

The White House noted that financial assistance should align with the administration's priorities, including effective tax allocation for a stronger and safer America, reducing inflation burdens on citizens, improving government efficiency, and enhancing public health.

The suspension also applies to activities of other agencies linked to executive orders, including but not limited to foreign aid, non-governmental organizations (NGOs), diversity, equity, and inclusion (DEI) programs, gender ideology, and the Green New Deal.

"This temporary suspension will allow the administration to reassess agency programs and determine the most appropriate use of funds in accordance with the law and presidential priorities," the memorandum added.

The directive took effect at 10:00 GMT on Tuesday (Jan 28).