10 Business Sectors Eligible for the Largest Working Capital Loans from Commercial Banks

Based on data from Bank Indonesia (BI), working capital credit for general banks in Indonesian Rupiah reached Rp 2.11 quadrillion in July 2021. This figure grew by 2.25% year-on-year (YoY) compared to July 2020 and by 1.64% year-to-date (YTD) compared to the end of 2020.

The largest working capital loans from general banks flowed to the wholesale and retail trade sector, amounting to Rp 793.82 trillion (37.54%) of the total credit disbursed. Following this, general banks also provided significant working capital credit to the manufacturing industry (Rp 443.09 trillion, 20.95%) and the construction sector (Rp 227.88 trillion, 10.78%).

Compared to July 2020, the accommodation sector recorded the highest growth in credit, at 26.27% (YoY). Similarly, the transportation and warehousing sector grew by 20.61% (YoY), and the agricultural sector grew by 18.44% (YoY). Meanwhile, the electricity sector experienced the sharpest decline, at -23.75% (YoY).

Compared to December 2020, the information and communication sector recorded the highest growth, at 27.41% (YTD). Other services grew by 10% (YTD), and accommodation services grew by 9.6% (YTD). In contrast, the government administration sector contracted by 30.76% (YTD).

The average interest rate for general bank working capital credit in Indonesian Rupiah was 8.94%/year. The lowest working capital credit interest rate was offered by foreign/mixed banks, at 6.18%/year. The highest working capital credit interest rate was offered by Regional Development Banks (BPD), reaching 9.9%/year.