B2B payment practices trend, Indonesia 2023

The 2023 Payment Practices Barometer survey for Indonesia was conducted between the end of Q2 and the beginning of Q3 2023, and findings should therefore be viewed with this in mind.

Key takeaways from the report for Indonesia

Rise in late payments prompts risk mitigation measures

• A range of strategies were adopted by businesses polled across Indonesia in response to the challenges posed by late payments and the need to mitigate the impact of customer
  credit risk. 55% of companies allocated extra time and resources on chasing unpaid invoices, although there was concern expressed across all sectors about the extra costs
  involved in this approach. Another prevalent strategy was to seek external short-term finance to boost resilience.
   
• 59% ofbusinesses polled said they favoured bank loans, while requesting trade credit was popular in the electronics and ICT sectors. Some companies, particularly in the chemicals sector chose to delay investment plans as a measure to mitigate liquidity risk.

Despite inflation worries businesses stay cautiously upbeat

• A generally optimistic outlook for the year ahead was found among companies polled across Indonesia. 67% of businesses told us they expect to see an increase in demand and
  therefore sales for their products and services. This positive mood was consistent in all sectors except the chemicals industry, which reported a slightly more pessimistic stance.
   
• 62% of companies polled said they anticipate an expansion in profit margins during the coming months, with the electronics and ICT sectors particularly buoyant about future
  profitability. The remainder of businesses in Indonesia expect no change or a decline in profits.

The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers. 

Interested in finding out more?

For a complete overview of the 2023 survey results for Indonesia, please download the full report available in the related documents section below. The Statistical Appendix to the regional report is also available for download in the section below.

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