Corporate Financing Increased by 25.3 Throughout the Month of March.
Corporate financing needs in March 2024 are indicated to be increasing. This is reflected in the Weighted Average Balance (WAB) of corporate financing at 25.3%, significantly higher than the February 2024 WAB of only 11.1%.
Quoting a written statement from Bank Indonesia through Assistant Governor/Head of Communication Department Erwin Haryono, the increase in financing needs is driven by demand from the trading, manufacturing, and construction sectors.
The main sources of corporate financing mainly come from internal funds, followed by the utilization of drawdown facilities and financing from domestic banks.
In the household sector, 10.9% of respondents stated that there are new financing needs in March 2024.
The majority of household financing comes from commercial banks with a market share of 41.2%, an increase compared to the previous month at 39.8%.
Apart from banks, other main sources of household financing preferences include leasing and cooperatives.
Meanwhile, the disbursement of new credits by banks in March 2024 is also indicated to be increasing with a WAB of 80.9%, higher than the February 2024 WAB recorded at 54.1%.
The main factors influencing the forecast of new credit disbursement in March 2024 are the financing demand from customers, prospects of future monetary and economic conditions, and the level of business competition from other banks.
"Overall, during the first quarter of 2024, the supply of new credit disbursement from banks is expected to continue growing," said Erwin.
