Indonesia's loan expansion accelerated at a faster pace in July after weakening to its bottom in June, showing that business activities have been creeping up along with the easing of restrictions applied to rein the COVID-19 spread.

The Indonesian Financial Services Authority (locally known as OJK) said on Thursday that the loan growth ticked up 2.27 percent as recorded on July 23 annualized after registering 1.49 percent growth in June.

The government stimulus packages, including the placement of the government funds in four state banks to boost their liquidity which can be distributed to businesses and the guarantee of the working capital, played roles in the loan expansion in July, local media reported.

Indonesia has placed a 30 trillion-rupiah (about 2.13 billion U.S. dollars) fund in four state banks to help them expand lending.

The government has also pledged to guarantee working capital loans for private firms worth 100 trillion rupiahs (some 6.85 billion U.S. dollars) this year to help them withstand the virus pandemic.

Indonesia started to ease restrictions applied to rein the COVID-19 transmission in June and reopen mall shopping centers under tight health protocols.

The rebound of the loan growth in July occurred after the retail sales showed improvement and the spikes in motorbike and car sales in June.

The government has been striving to avoid a deep recession after the economy decelerated 5.32 percent in the second quarter.

The central bank, Bank Indonesia, has trimmed its key rate by 100 basis points to 4.0 percent this year.

The sanguine sentiment over the reliability of the COVID-19 vaccine for usage early next year has offset the concern over the spread of the virus which has been afloat across the country as of late.