Indonesia 'Will Not Speculate' as U.S. Freezes Federal Grants, Loans

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January 30, 2025 | 08:39 am

TEMPO.CO, JakartaIndonesia’s Ministry of Foreign Affairs said the government will only respond to formal communication, regarding the U.S. pause on federal grants and loans announced by the White House, Antara reported.

“Indonesia will only respond based on formal communication through diplomatic channels or other official means, which are discussed between the government agencies of the two countries,” Indonesian Foreign Ministry Spokesperson Rolliansyah Soemirat said in a brief message received in Jakarta on Wednesday, January 29, 2025.

Rolliansyah emphasized that the government will not speculate based on generic statements from other governments not specifically addressed to Indonesia.

As reported by Anadolu, the White House's Office of Budget and Management has issued an order to temporarily pause all federal grants and loans, according to an internal memorandum sent on Monday.

"In Fiscal Year 2024, of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans," it said.

The White House said financial assistance should be dedicated to advancing administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, promoting efficiency in government, and “Making America Healthy Again."

"This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities," it added.

Citing Reuters, Trump’s administration appeared to abandon its proposed freeze on hundreds of billions of dollars in aid on Wednesday, January 29, in the face of legal setbacks and widespread opposition, though officials said they still planned to cut funds for activities opposed by Trump.

The White House budget office told federal agencies it was rescinding a memo that had ordered the pause in grant and loan payments.

The reversal is the latest head-spinning move for a president who has pushed boundaries since taking office on Jan. 20. He has halted wide swaths of foreign aid, pardoned supporters who attacked U.S. Capitol police and offered buyouts to thin the ranks of civil-service workers.

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