Corporate Financing Demand Increased in September 2022

Bank Indonesia recorded an increase in corporate financing demand in September 2022 compared to the previous month. This is reflected in the Weighted Net Balance (WNB) of corporate financing, which reached 18.4%, higher than the previous month's WNB of 17.9%.

Several sectors showed increased financing needs, including transportation and warehousing, agriculture, and info-communications, primarily to support operational activities and meet maturing obligations.

This financing need was mainly met through internal funds, which remained the majority source of financing, followed by the utilization of overdraft facilities, both of which increased compared to the previous month.

New credit disbursement by banks in September 2022 also showed positive growth. This is indicated by a Weighted Net Balance (WNB) of new credit disbursement of 56.8%. The main factors influencing the estimate of new credit disbursement were the outlook for future monetary and economic conditions, and financing demand from customers. Meanwhile, for the entire third quarter of 2022, the supply of new credit disbursement is also projected to grow positively, although slightly slower than the previous quarter.

On the household side, demand for new financing also showed positive growth in September 2022. Most households chose commercial banks as the primary source of additional financing, although this decreased compared to the previous month.

The type of financing applied for by households was mostly Multi-Purpose Credit. Other financing sources preferred by respondents to meet their financing needs include leasing and leasing.

(read: Corporate Financing Demand Slowed in August 2022)