Financing Needs In September 2023 Rise, Here Are The Factors

JAKARTA - The need for corporate financing in September 2023 has increased.

This can be seen from the results of a survey by Bank Indonesia (BI) which showed Weighted Net Balance (SBT) to 16.1 percent compared to the previous month 14.7 percent.

Executive Director of the Communication Department of Bank Indonesia (BI) Erwin Haryono said that the increase in corporate financing sources mainly came from his own funds, followed by financing from domestic banks and the use of withdrawal concession facilities.

"The distribution of new credit by banks in September 2023 is also indicated to increase compared to the previous month. New credit disbursement SBT in September 2023 was recorded at 92.6 percent, growing higher than the previous month of 86.2 percent," he explained in his official statement, Tuesday, October 17.

In addition, the increase in corporate financing needs was mainly driven by the construction, trade and education services sectors.

The increase in financing needs that occur is mainly used for operational activities, paying due obligations, and supporting investment activities.

The construction sector in September 2023 recorded an SBT of 3.9 percent compared to the previous month of 2.5 percent.

Then, the trade sector recorded SBT 1.8 percent compared to 0.5 percent in the previous month.

Furthermore, the education services sector recorded SBT 1.2 percent compared to 0.0 percent in the previous month.

According to Erwin, the main factors that affect the distribution of new loans include requests for financing from customers, prospects for monetary and economic conditions in the future, as well as levels of business competition from other banks.

Meanwhile, for the entire third quarter of 2023, the offer of new credit disbursement from banks has increased compared to the previous quarter.

Erwin said, from the household side, the demand for new financing was indicated to be relatively stable in September 2023.

In the next 3 to 6 months, the fulfillment of financing originating from commercial banks is predicted to increase compared to the previous period.

"In addition to banking, other sources of financing that are household preferences to meet financing needs include cooperatives and leasing," he said.