Corporate financing needs projected to rise: BI survey

Corporate financing needs projected to rise: BI survey

Aerial photo of agricultural land during the rice planting season in Darmaraja Village, Ciamis District, West Java, Saturday (23/1/2021). ANTARA/Adeng Bustomi/rwa.

The corporate financing needs are partially planned to use their own funds (retained earnings) and partly from bank credit
Jakarta (ANTARA) - The need for corporate financing is indicated to increase in the next three months, particularly to support operational activities, as indicated by the weighted net balance (SBT) of financing needs that amounted to 27.1 percent.

An increase in financing needs was mainly experienced in the mining and quarrying sector; agriculture, fisheries and forestry; information and communication and real estate.

"The corporate financing needs are partially planned to use their own funds (retained earnings) and partly from bank credit," Executive Director of the Communication Department of Bank Indonesia (BI) Erwin Haryono noted in a statement in Jakarta on Friday in connection with the Banking Financing Demand and Supply Survey in January 2021.

Haryono expounded that the additional household financing in the next three and six months is indicated to still be limited. Commercial banks are still the main preference of households in their future financing plans, especially in the form of Multi-Purpose Loans, Home Ownership Loans, and Motor Vehicle Loans.

From the banking supply side, indications of new credit disbursement increased in the first quarter of 2021, as was mirrored in the estimation of SBT for new credit disbursement of 67.4 percent.

"Based on bank groups, quarterly growth is forecast for all bank categories and for all types of credit," Haryono stated.

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