JAKARTA - Bank Indonesia (BI) said the need for corporate financing began to increase in the first quarter of 2021. This was conveyed by Erwin Haryono, Executive Director, Head of the BI Communication Department, in a press release quoted on Monday (18/1).
He explained that the need for corporate financing was to support operational activities, especially in the manufacturing, construction and trade sectors. "The weighted net balance for corporate financing in the next 3 months is 17.1%," said Haryono in the result of Banking Financing Demand and Supply Survey December 2020.
According to him, the largest source of corporate financing came from retained earnings 51.3%, followed by financing from parent companies 14.8%, domestic banking loans 8.7%, and others 15.7%. "The reason respondents used their own funds was because of the ease and speed of using the funds," added Haryono.
A number of other sectors that are still experiencing a decline in financing needs including agriculture, fisheries and forestry. Meanwhile, mining and quarrying sector experienced a decline in financing request. (LK/VA)