Corporate Financing Needs Increased in April 2022

Bank Indonesia (BI) recorded an increase in corporate financing needs in April 2022 compared to the previous month. This is reflected in the Weighted Net Balance (WNB) of 29.0%, higher than the March 2022 WNB of 15.6%.

This increase was influenced by growing financing demand from several sectors. The WNB for the agricultural sector rose from 4.4% to 7.7% as of April 2022.

Furthermore, financing in the information and communication sector also increased to 2.7% as of April 2022. From the manufacturing industry sector, the WNB recorded growth to 7.3%.

Meanwhile, the majority of respondents (62.2%) still met their financing needs from their own funds. Furthermore, 15.9% of respondents relied on financing sources from utilizing overdraft facilities.

Next, 6.7% of respondents sourced financing from additional loans/debt through their parent companies. This was followed by financing needs from additional loans/debt through parent companies, also at 6.7%.

Subsequently, 5.5% sourced financing from loans from domestic banks. Additionally, 1.8% of respondents sold non-productive fixed assets as a source of financing.

Furthermore, 0.6% of respondents issued domestic securities as a source of financing. Meanwhile, 6.7% of respondents obtained financing from other sources.

(Also Read: BI Survey: Many Companies Need Funds, but Don't Borrow from Banks)