The Supply and Demand Financing Survey revealed a continuing increase in corporate demand for financing for the next three months, primarily to support operating activities. Weighted Net Balance (WNB)1 for financing in November 2020 and the next three months are higher than previously surveyed, mainly from Agriculture, Forestry and Fishing, Wholesale and Retail Trade, Real Estate as well as Education Services. In general, respondents also confirmed that most corporate demand for financing would be met through internal funds (retained earnings).
In terms of households, demand for financing for the next 3 and 6 months were indicated to be limited. For respondents who stated that they planned to increase financing, types of financing to be proposed were mainly multipurpose loans, housing loans and automotive loans.
On the supply side, new loan disbursements from banking industry was expected to increase further in December 2020. It was confirmed by a significant bump in the WNB to 52.3% in December 2020 from 13.5% in November 2020, led by regional banks and commercial banks with a WNB of 56.1% and 52.0% respectively. Survey respondents also disclosed that working capital loans would boost supply in the reporting period with a WNB of 51.3%.
Full survey results are available on the official website of Bank Indonesia.
Jakarta, December 18th 2020
Head of Communication Department
Erwin Haryono
Executive Director
Information on Bank Indonesia
Tel. 021-131, email: bicara@bi.go.id
1The weighted net balance is calculated by multiplying the net balance by the respective weight of each economic sector. The net balance is calculated based on the percentage difference of respondents predicting an increase or decrease response. A positive result indicates an expansion, while a negative result reflects a contraction.
