BI Projection For Corporate Credit Demand For Quarter II / 2021 Stable, Household Sector Still Under Pressure

Illustration of rupiah currency. (Photo: By courtesy)

JAKARTA - Bank Indonesia (BI) estimates that corporate financing needs for the next three months, or during the second quarter of 2021, are estimated to be relatively stable compared to the first quarter of this year.

This assumption was made by the monetary authority based on the recently conducted Demand and Supply Survey for Banking Financing in February 2021.

Head of the BI Communication Department Erwin Haryono said this was reflected in the Weighted Net Balance (WNB) of 26.5 percent or relatively stable from the previous month's WNB which was known at 27.1 percent.

Some of the sectors that showed the largest increase in financing were agriculture, fisheries and forestry, trade, transportation, and warehousing, as well as the mining and quarrying sector.

"Most of the respondents answered that the increased financing needs will be used to support operational activities, recovery of domestic demand after the implementation of the new normal, and payment of maturing obligations", he said in a press statement received by the editor, Sunday, March 21.

Meanwhile, it is believed that there will be limited pressure on additional financing made by households in the next three months.

For information, in February 2021 respondents who plan to increase financing in the next quarter II / 2021 by 1.9 percent, or a decrease from 2.4 percent in the previous survey conducted by the central bank.

"Proposals for financing by households are mainly obtained from commercial banks, with the majority of types of financing proposed in the form of Multi-Purpose Credit (KMG)", he said.

Meanwhile, from the supply side of banks, new credit disbursements are estimated to grow positively for the entire first quarter of 2021.

"This is indicated by the estimated new credit disbursement WNB of 59.4 percent. "Based on bank groups, quarterly growth is expected to occur in all bank categories and all types of credit", said Erwin.

Earlier in the middle of this week, Bank Indonesia decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50 percent.

Apart from that, the monetary authority also did not change the deposit facility interest rate, which was 2.75 percent, and the lending facility rate at 4.25 percent.

This policy does not change BI's last decision on February 18, which set the benchmark interest rate at the level of 3.50 percent.