Indonesian banks extended more new loans in December

This was thanks to a rise in demand from both corporates and households.

Indonesian banks saw an uptick in new loans disbursed in December, according to central bank data, amidst increased demand from customers and competition between banking institutions.

New loans disbursed by the banking industry, as reflected by a higher weighted net balance (WNB) of 73.3% in December compared to just 70.4% in November 2023.

Both corporate loans and household loans were in demand during the month. Corporate loans’ WNB rose to 18.4% during the month, compared to just 14.9% in November, on stronger demand from the manufacturing industry and the trade sector.

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Corporate demand for financing was mainly sourced from internal funds, followed by committed undisbursed loans and financing from domestic banks, according to the Bank Indonesia.

For households, demand for new financing-maintained growth in December, with most sourced from commercial banks, BI said.

In addition to the banking industry, households also relied on other sources to meet their financing needs, including cooperatives and leasing, the central bank noted.