The latest Bank Financing Supply and Demand Survey conducted by Bank Indonesia (BI) in February 2024 indicates increasing corporate demand for financing, as reflected by an uptick in the Weighted Net Balance (WNB) to 11.1% from 6.5% in January 2024. This was primarily driven by stronger demand in the agricultural, information, and communication as well as real estate sectors. Corporate demand for financing was predominantly sourced from internal funds, followed by committed undisbursed loans and financing from domestic banks.
In terms of households, demand for new financing also increased compared to conditions one month earlier, with most sourced from commercial banks. In addition to the banking industry, households also relied on other sources to meet their financing needs, including cooperatives and leasing.
Meanwhile, new loan disbursements by the banking industry in February 2024 also tracked an upward trend, with the corresponding WNB increasing to 54.1% from 24.5% in January 2024. The main factors affecting new loan disbursements in the reporting period were customer demand for financing, the monetary and economic outlook as well as the level of competition between banking institutions. Meanwhile, respondents expect to maintain positive growth of new loan disbursements in the first quarter of 2024.