The latest Bank Financing Supply and Demand Survey conducted by Bank Indonesia in July 2023 reportedly “indicates limited growth of corporate financing, as reflected by a relatively stable Weighted Net Balance (WNB) of 17.6% compared to 17.8% in June 2023. Corporate financing was primarily sourced from internal funds, followed by disbursed financing from domestic banks and committed undisbursed loans.”
New loan disbursements by the banking industry in July 2023 also “posted limited growth compared to conditions one month earlier.”
The WNB of new loan disbursements in July 2023 “stood at 45.1%, down from 81.7% 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, however, respondents predict “increasing new loan disbursements by the banking industry in the third quarter of 2023.”
In terms of household, demand “for new financing accelerated in July 2023.”
Meanwhile, financing sourced from commercial banks slightly “moderated compared to the previous period.” Households also relied “on other sources to meet their financing needs, including cooperatives and leasing.”
More information concerning the Bank Financing Supply and Demand Survey is available via the Bank Indonesia website.
In another update, it was noted that the latest Residential Property Price Survey conducted by Bank Indonesia in the second quarter of 2023 indicates “that residential property prices in primary market are still rising on an annual basis, with growth of the Residential Property Price Index (RPPI) accelerating to 1.92% (yoy) from 1.79% (yoy) in the previous period.”
In terms of sales, the latest survey “indicates sluggish residential property sales in the primary market in the second quarter of 2023, as reflected by a deeper 12.3% (yoy) contraction in the reporting period after contracting 8.26% (yoy) in the first quarter of 2023.”
Based on the sources of finance, the latest Residential Property Price Survey also “shows that most developers continue to rely on non-bank financing in the form of internal funds for residential property development, dominating 72.80% of total capital in the second quarter of 2023.”
On the consumer side, housing loans “disbursed by the banking industry remain the preferred source of financing residential property purchases, accounting for 76.02% of total financing in the reporting period.”
The complete Residential Property Prices Survey is “available for download via the official Bank Indonesia website.”