Bank Indonesia (BI) survey reports a resurgence in corporate credit demand or financing. BI recorded positive growth in corporate financing demand in July 2022, reflected in a Weighted Net Balance (WNB) of 20.5%. This figure is higher than the June 2022 WNB of 16.4%.
This development was driven by increased financing demand from the agriculture, trade, and motor vehicle repair sectors, primarily to support operational activities, meet maturing obligations, and bolster domestic demand recovery.
Meanwhile, most respondents' financing needs were met with their own funds. Others relied on sources such as utilizing relaxed credit facilities and loans from parent companies.
Furthermore, the survey projects a slowdown in financing needs in the next three months (October 2022) compared to the previous month (September 2022).
This is indicated by a projected WNB of 22.9% for October 2022, lower than the previous month's 23.2%.