The latest Bank Financing Supply and Demand Survey conducted by Bank Indonesia in August 2023 indicates an uptick of new loan disbursement by the banking industry, with the weighted net balance (WNB) increasing to 86.2% from 45.1% in the previous period. The main affecting factors of new loan disbursements in the reporting period were customer demand for financing, the monetary and economic outlook, as well as the level of business competition between banks.  Overall, respondents expect new loan disbursements by the banking industry to increase in the third quarter of 2023.

In terms of households, demand for new financing remained relatively stable in August 2023. Meanwhile, financing sourced from commercial banks increased compared to the previous period. Households also relied on other sources to meet their financing needs, including cooperatives and leasing.