Household Debt Financing Still Limited in November 2021

Bank Indonesia (BI)'s November 2021 Survey on Bank Financing Supply and Demand indicates that the increase in household debt financing remained limited and slowed compared to the previous month.

This is reflected in the percentage of household respondents who increased their debt, falling from 8.6% in October to only 7.4% in November 2021.

Household financing demand in November 2021 primarily originated from Commercial Banks, with a 38.9% share, slightly higher than the 37.9% in the previous month. Furthermore, 18.6% of households used cooperatives as a financing source to meet their needs.

In addition, 12.4% of households used leasing companies for additional financing. Another 9.7% used friends as a financing source.

Other sources of financing for household needs included Rural Banks (BPR) and Fintech (Financial Technology), with 5.7% and 4.6% of respondents respectively utilizing these sources.

Regarding the types of financing requested by households in November 2021, Multi-Purpose Loans (KMG) were the most frequently applied for, accounting for 43.9% of the total. This was followed by Motor Vehicle Loans (KKB) and Home Ownership Loans (KPR) with shares of 18.2% and 15.2% respectively.

Meanwhile, household appliance loans and credit card applications accounted for 14.2% and 4% respectively. Another 4.5% of households applied for other types of financing.