Bank Indonesia Survey Indicates Growing Corporate Demand for Financing

The latest Banking Financing Supply and Demand Survey conducted by Bank Indonesia (BI) in June 2023 indicated growing corporate demand for financing.

IDXChannel - The latest Banking Financing Supply and Demand Survey conducted by Bank Indonesia (BI) in June 2023 indicated growing corporate demand for financing.

It was reflected by an uptick in the Weighted Net Balance (WNB) to 17.8% from 12.5% in May 2023.

"Corporate financing was primarily sourced from internal funds, which remained dominant, followed by committed undisbursed loans, both of which increased on the previous period," BI Communication Department Executive Director Erwin Haryono said in a media release on Tuesday (18/7/2023).

New loan disbursements by the banking industry in June 2023 posted limited growth, with the corresponding WNB retreating slightly to 81.7% from 82.6% in the previous period.  The main affecting factors of new loan disbursements in the reporting period were customer demand for financing, the monetary and economic outlook, as well as the level of business competition between banks. 

Overall, however, new loan disbursements by the banking industry are projected to increase in the second quarter of 2023. 

In terms of households, demand for new financing also demonstrated limited growth in June 2023, with commercial banks remaining the primary source of additional household financing in the form of multipurpose loans.  In addition, households also relied on other sources to meet their financing needs, including cooperatives and leasing. (WHY)