Economic Prospects are Improving, Corporations are Increasingly Interested in Withdrawing Bank Credit

JAKARTA – Bank Indonesia (BI) reported that demand for corporate financing in March 2023 indicated an increase.

Head of the BI Communication Department Erwin Haryono said this was reflected in the Weighted Net Balance (SBT) of corporate financing of 24.0 percent. According to him, this figure has increased from the WNB of 9.4 percent in February 2023.

"Sources of financing mainly come from own funds, followed by financing from domestic banks which have indicated an increase compared to the previous month," he said in a press statement today, Monday, March 17.

Erwin explained, on the household side, there were indications of increasing demand for new financing in March 2023. 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.

"Other sources of financing that are household preferences to meet financing needs include cooperatives and leasing," he said.

Erwin added, in line with the increasing demand for financing, there were indications of an increase in the distribution of new loans by banks in March 2023 compared to the previous month.

He said that the SBT for new credit distribution in March 2023 was recorded at 94.6 percent or higher than the previous month's SBT of 66.7 percent.

"The main factors influencing the distribution of new loans include financing requests from customers, prospects for future monetary and economic conditions, as well as the level of business competition from other banks," he said.

"Meanwhile, for the whole of the first quarter of 2023, new credit distribution offers from banks are expected to grow positively," concluded Erwin.