Public interest in owning a motor vehicle through a credit scheme continues to increase. This is evidenced by the Banking Financing Demand and Supply Survey released by Bank Indonesia.
Based on the type of use, Motor Vehicle Loans (KKB) recorded an increase in share from 23.4 percent in June 2022 to 25.1 percent as of July. This calculation is monitored from new financing applications made by household respondents.
In the report, Bank Indonesia stated that the demand for household financing through credit increased. The share of household respondents who made additional costs through credit reached 10.3 percent in July 2022, higher than the previous month’s 8.9 percent.
Bank loans are still the main source of household financing in July 2022, with a market share of 37.4 percent. Other sources are cooperatives at 19.8 percent, leasing at 19.3 percent, and friends reaching 9.1 percent.
The stretching of the increase in KKB also continued the performance achieved throughout June 2022. During that period, the central bank noted that the distribution of KKB reached Rp 108.2 trillion or grew 8.4 percent year-on-year (YoY).
Research Director of the Center of Reform on Economics (Core) Piter Abdullah projects that the growth of the KKB will continue until the end of the year in line with the loosening of mobility and more normal community activities.
“With this background, if people’s mobility continues to be undisturbed, motor vehicle sales will continue to increase, as will financing or KKB, and could grow to double digits in 2022,” said Piter,
Piter said that one of the opportunities that affect this growth is the high commodity prices and economic recovery. Meanwhile, uncertainty and rising prices are still considered to be a challenge.
However, he stated that despite rising prices and interest rates, motor vehicle sales growth is expected to continue.
Indeed, The middle-class group in Indonesia who earns IDR 5 million and above per month reduces the proportion of spending on savings in July 2022 compared to June 2022. This is evident in the Bank Indonesia (BI) Consumer Survey. At the same time, the proportion of spending on installments and loans is increasing.
This is also done by the community with incomes ranging from Rp. 3.1 million – Rp. 4 million per month and Rp. 4.1 million – Rp. 5 million per month.
Based on the Consumer Survey (SK) issued by Bank Indonesia, the average portion of savings to income in the three categories decreased compared to June 2022.
“People who earn IDR 3.1 million – IDR 4 million per month on average, the portion of savings to income decreased from 17 percent to 16.4 percent in July 2022,” wrote Bank Indonesia as quoted in an official statement, Monday (8/8/ 2022).
Respondents earning IDR 4.1 million – IDR 5 million per month decreased from 18.1 percent to 17.8 percent and people with income above 5 million and above decreased from 19 percent in June 2022 to 17.8 percent as of July 2022.
Meanwhile, the increase in the portion of savings to income was recorded only for respondents with expenditure levels of Rp. 1 million – Rp. 2 million and Rp. 2.1 million – Rp. 3 million per month. They rose from 18 percent to 18.1 percent as of July 2022 and 16.8 percent to 17.3 percent as of July 2022, respectively.
For customers with an income of IDR 5 million and above, the survey also found that the proportion of respondents’ expenditure on consumption decreased from 70.3 percent in June to 65.8 percent in July 2022.
