UPDATE 1-Indonesia gets $1.3 bln loans from World Bank for COVID response, reforms

(Recasts with new loan)

JAKARTA, June 18 (Reuters) - The World Bank has approved two loans totalling $1.3 billion for Indonesia this week to support its COVID-19 response and economic policy reforms, according to statements from the lender and the government.

A $500 million loan was approved on Thursday to fund Indonesia’s free vaccination campaign and expand COVID-19 care and testing facilities, the multinational lender said in a statement on Friday.

The $800 million was approved earlier this week. The government on Friday said in a statement it would use the proceeds to open more sectors to private investment, especially in renewable energy, improve access to basic food and facilitate access to the manufacturing sector.

Indonesia is grappling with a spike in COVID-19 cases weeks after Eid al-Fitr festivities, during which many had travelled to their hometowns to celebrate.

On Thursday, the country reported the biggest daily increase in cases since Jan. 30 of 12,624 infections.

Its total caseload of 1.95 million and more than 53,750 deaths are the highest in Southeast Asia.

The World Bank has provided Indonesia with at least $2.2 billion in loans this year including for programmes to deepen its financial markets and to respond to national disasters. (Reporting by Tabita Diela; Editing by Gayatri Suroyo and Ed Davies)