Bank Indonesia Finds Corporate Financing Growing Slow, What's Up?

Illustration of Rupiah (Photo: dock. intermediate)

JAKARTA - Bank Indonesia stated that corporate financing in July 2023 was indicated to have limited growth.

Head of the BI Communication Department Erwin Haryono said that this was reflected in the Weighted Net Balance (SBT) of corporate financing of 17.6 percent.

"The level is relatively stable compared to the SBT 17.8 percent in June 2023," he said in a written statement on Friday, August 18.

According to Erwin, the source of corporate financing mainly comes from his own funds, followed by financing originating from domestic banks and utilizing withdrawal concession facilities.

"New credit disbursement by banks in July 2023 is also indicated to have a limited growth compared to the previous month," he said.

Erwin explained that the new credit disbursement SBT in July 2023 was recorded at 45.1 percent. The score grew positively, although it was lower than the previous month's 81.7 percent.

"The main factors that influence 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," he stressed.

Meanwhile, for the entire third quarter of 2023, offers for new lending from banks are predicted to increase. Furthermore, on the household side, new financing requests are indicated to increase in July 2023.

Meanwhile, the fulfillment of financing originating from commercial banks has slowed slightly compared to the previous month.

"In addition to banking, other sources of financing that are household preferences to meet financing needs include cooperatives and leasing," Erwin concluded.