Bank Indonesia: Bank Credit Disbursement Increases Supported by Economic Optimism Forward

JAKARTA - Bank Indonesia (BI) reported that new credit distribution by banks in December 2022 indicated an increase compared to the previous month.

Head of the BI Communication Department, Erwin Haryono, said this was reflected in the weighted net balance (SBT) of new credit distribution of 77.7 percent or significantly higher than the SBT in the previous month of 58.6 percent.

"The main factors affecting the forecast for new credit distribution are demand for financing from customers, prospects for future monetary and economic conditions, as well as the level of business competition from other banks", he said in a written statement quoted on Wednesday, January 18.

According to Erwin, there are also indications of increasing demand for corporate financing in December 2022. This is reflected in the SBT for corporate financing of 21.5 percent. This increase is higher than the November 2022 SBT of 13.2 percent.

"The majority of sources of financing come from own funds, followed by loans/debt from the parent company, the use of easy withdrawal facilities, and the addition of new credit to domestic banks", he said.

As for the household side, there are also indications of positive growth in demand for new financing in December 2022. He said, the majority of households applied for a type of financing in the form of multi-purpose loans and chose commercial banks as the main source of additional financing.

"Meanwhile, other sources of financing that are household preferences for meeting financing needs include cooperatives and leasing", concluded Erwin.