BI Records Corporate Financing Needs In June Increase

Executive Director of the Communication Department of Bank Indonesia (BI) Erwin Haryono. (ANTARA)

JAKARTA - The Bank Indonesia Bank Financing Demand and Offer Survey (BI) noted that corporate financing in June 2023 was indicated to increase.

Executive Director of the BI Communication Department Erwin Haryono explained that the increase was reflected in the Weighted Net Balance (SBT) of corporate financing of 17.8 percent, higher than SBT 12.5 percent in May 2023.

The increase in corporate financing needs was mainly driven by the construction, trade and mining sectors. The increase that occurs is mainly to support operational activities and pay maturing obligations.

The majority of corporate financing comes from their own funds, followed by financing originating from the use of attractive leniency facilities, both of which increased compared to the previous month.

On the household side, he said the demand for new financing grew limited in June 2023, indicated by household respondents who added financing through debt or credit in June 2023 by 9.7 percent of the total respondents, slightly slower than 10.7 percent in the previous month.

The majority of households apply for types of financing in the form of multi-purpose loans and choose commercial banks as the main source of additional financing. Other sources of financing that are household preferences to meet financing needs include cooperatives and leasing.

In terms of supply, Erwin revealed that new lending by banks in June 2023 was indicated to have limited growth compared to the previous month. The new credit disbursement SBT in June 2023 was recorded at 81.7 percent, slightly lower than the 82.6 percent SBT in the previous month.

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 second quarter of 2023, offers for new credit disbursement from banks are expected to increase.