"This was confirmed by a weighted net balance (WNB) of demand for financing in the next three months of 17.1%, primarily driven by the Manufacturing Industry, Construction and Trade," said Bank Indonesia (BI) in a press release on Monday.
Respondents confirmed that corporate demand for financing would be met partially through bank loans as well as internal funds (retained earnings).
Survey respondents reported restrained household demand for financing in the next three and six months, particularly in terms of commercial banks and multipurpose loans.
On the supply side, new loan disbursements from the banking industry were expected to improve at the beginning of 2021.
It was reflected by an increase in the corresponding WNB to 53.1% in January 2021 from 42.8% in December 2020, led by Islamic banks and commercial banks, and particularly loan in the type of working capital and housing.