BI Says New Household Financing Needs Are Increasing

Rupiah illustration (Photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) revealed in a survey of banking financing requests and offers in February 2024. In the survey, the need for new financing for household groups indicated to increase.

Assistant Governor of the BI Communication Department Erwin Haryono said that in the household group, it was recorded that the group's new financing needs were indicated to increase, as reflected in the increase in the percentage of households that increased debt/credit in February 2024 by 12.5 percent compared to the previous month of 12.1 percent.

The majority of household financing comes from commercial banks. Apart from banking, the main source of financing that is a household preference includes leasing and cooperatives," he said in his official statement, Thursday, March 21, 2024.

Meanwhile, the main source for the fulfillment of household financing in February 2024 came from commercial bank loans in the range of 39.8 percent, an increase compared to the previous month which was recorded at 35 percent. Meanwhile, those from other financing sources, namely leasing and cooperatives, respectively, amounted to 18.6 percent and 16.5 percent.

Meanwhile, based on the type of use, BI reported that the majority of financing submitted by household respondents in February 2024 was Multi Guna Credit (KMG) at 37.7 percent, a decrease compared to the previous period of 39.3 percent. Furthermore, Motor Vehicle Loans (KKB) amounted to 22.6 percent, household appliance loans 12 percent, home ownership loans 11.5 percent, and credit cards 5.5 percent.

"Based on the survey results for the February 2024 period, the increase in household loans was mainly driven by an increase in mortgage applications," he explained.

Furthermore, BI explained that according to the level of expenditure, the majority of households that applied for financing in February 2024 were household groups with expenses of IDR 3-5 million per month or 40.8 percent, although not as much as the previous month 42.1 percent.

Furthermore, 38.9 percent of households with expenditures of IDR 1-3 million per month applied for financing. However, it decreased compared to January 2024 by 40.9 percent. Meanwhile, in household groups with an expenditure rate of more than IDR 5 million per month, it reached 20.2 percent, an increase compared to the previous month of 17.1 percent.

The plan to increase financing by households is also expected to increase in the survey. It is indicated that respondents who plan to increase financing in the future are 6.6 percent higher than the previous month of 6.1 percent.

In this case, it is still estimated that BI will become the main source of household financing in the future, with a percentage of 59.6 percent relatively stable compared to the previous period survey of 59.9 percent.

"Based on the survey results in February 2024, the type of future financing that is most proposed by households is multi-purpose credit of 50.2 percent, stable compared to January 2024 50.2 percent," he said.