New loans in Indonesia to moderate in Q1: survey

The weighted net balance is at 96.1% in Q4 2023, but is only expected to be 44.6% in Q1.

Indonesia’s financial institutions disbursed more new loans in the fourth quarter of 2023 compared to the third quarter, according to data from the Bank Indonesia.

Weighted net balance (WNB) for the last three months of 2023 is 96.1%, higher than the 95.4% in the previous period, with the increase attributed to investment loans and working capital loans.

However, respondents to BI’s survey predict that the volume of new loan disbursements will moderate in Q1 2024, with a WNB of 44.6%.

This is due to the slightly tighter lending standards recorded in Q4 2023 compared to previous conditions– especially for collaterals, credit lines, and document requirements.

On the other hand, lending rates and administration fees will remain looser, the BI said.