JAKARTA – The demand for corporate financing in June 2021 was estimated to climb up from May 2021. This result came from the Supply and Demand Financing Survey Report of March 2021 published by Bank Indonesia, quoted on Monday (19/4).
Erwin Haryono, the Executive Director of Communication Department Head of Bank Indonesia, announced that the source for financing to cover the companies’ operational needs was mostly taken from internal funds (retained earnings). Meanwhile, the banking loan portion would be reduced.
The respondents from the corporations mentioned that the most substantial financing funds came from the retained earnings (63.9%), followed by domestic banking loans (19.4%), the parent company loans (17.4%), and other means, like utilising loan facilities, selling fixed assets, and issuing bonds.
The funds collected would be allocated to operational activities (86.5%), followed by domestic demand recovery (24.5%), matured obligations payment (23.2%), and other activities to support investment and recover export demands.
The business sectors spotting an increased financing demand were information and communications, processing industry, agriculture, fisheries, and forestry, and construction. (LK/ZH)