BI warns about the weakened financing in five business sectors
JAKARTA – The corporate financing needs for five business sectors, including electricity, information and technology, warehouses and transportation, mining, and financial services, are predicted to stagnate throughout September-November 2021. This projection is revealed in the Supply and Demand Financing Survey released by Bank Indonesia (BI) on Friday (17/9).
Erwin Haryono, Executive Director and Head of Communication Department, claims that the contracted corporate financing is evident from the Weighted Net Balance of 15.9% in August 2021. It declines from 16.7% reported in July 2021. “The respondents state that the reasons behind the depleting financing demand in the next three months include weakened demands from trading partner countries, pessimism regarding the public’s demand, and interest efficiency,” he further specifies.
On the contrary, the financing demand would increase in processing, construction, food and beverages ingredient supply, and corporate services industries. The financing is mostly utilised to support operational activities, fund maturing obligations, and boost domestic demand recovery. The fund resources originate from internal cash, easy withdrawal facilities, and loans from parent companies.
The stagnation in financing has been hinted since August 2021, signified by the Weighted Net Balance of 0.9%, which was lower than the 1.8% reported in July 2021. This delay was apparent in the processing, healthcare services, and mining industries. (LK/ZH)