Bank Indonesia: Demand For Corporate Financing Increases Throughout July 2022

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reported that the demand for new corporate financing in July 2022 indicated an increase.

Head of the Communications Department (BI) Erwin Haryono said the assumption was based on a Weighted Net Balance (WNB) of 20.5 percent or higher than the June 2022 WNB of 16.4 percent.

"The increase in financing comes from own funds, which still make up the majority of financing, followed by the use of dance allowance facilities," he said in a press statement on Thursday, August 18.

According to Erwin, financing from loans to domestic banks is indicated to be slowing.

Meanwhile, new credit disbursement by banks in July 2022 also indicated positive growth although it slowed from the previous month and was reflected in the Weighted Net Balance (SBT) of new lending of 54.6 percent.

Meanwhile, the main factors influencing the forecast for new lending are the outlook for future monetary and economic conditions, as well as demand for financing from customers.

"For the entire period of the third quarter of 2022, the supply of new loans is also expected to grow positively, although it is slower than the previous quarter," he said.

Furthermore, in line with that on the household side, the demand for new financing is indicated to increase in July 2022.

The majority of households choose commercial banks as the main source of additional financing with the type of financing proposed by the majority in the form of Multi-Use Loans.

"Other sources of financing that are preferred by respondents to meet their financing needs include cooperatives and leasing," concluded the Head of the BI Communications Department, Erwin Haryono.