JAKARTA – The corporate financing needs, particularly in the mining, manufacturing, and construction sectors, are said to slow down in early 2023, compared to December 2022. It is reflected in the Financing Supply and Demand Survey of Bank Indonesia of October 2022 that was released yesterday (21/11).
The survey, quoted today (22/11), mentioned that the weighted net balance (WNB) in October 2022 reportedly reached 26.7%, shifting lower from the WNB in September 2022 of 28.3%. More specifically, the three sectors mentioned above reported similar weakening trend, including the WNB of the manufacturing sector that went from 5.8% in September to 4.8% in October 2022, the construction sector from 3.9% to 3.7%, and the mining sector from 1.01% to 0.0%.
For information, the weighted net balance is calculated from measuring the difference between the weighted proportion of businesses projecting an increase and those projecting a decrease.
The survey signifies that the main factor of this downturn in financing needs is the weakening demand from business partners, as well as the pessimism in the public’s demand.
Furthermore, the respondents of the survey mentioned that the source of financing mostly comes from their own internal cash or retained earnings. However, the banking credit and the relaxation of credit withdrawal still become the popular option for financing, despite the apparent weakened state compared to last month. (LK/ZH)