The 2024 Payment Practices Barometer survey for Indonesia was conducted during Q3 2024, and findings should therefore be viewed with this in mind.

Key takeaways from the report for Indonesia  

Indonesia cash flow concerns despite improved B2B payment behaviour

• Late payments currently affect an average of nearly 40% of all B2B invoices issued by Indonesian businesses, a slight improvement on the previous
  year. Bad debts written off as uncollectable now stand at an average 5% of all B2B invoices on credit.
   
• Customer cashflow problems are the main reason for late payments from B2B customers. It now takes an average of three weeks beyond the due date to convert past due invoices into cash, and nearly 40% of businesses say this causes difficulties in meeting financial obligations.

Economic and insolvency risks are major worries for Indonesian companies

• There is pessimism among Indonesian businesses concerning the outlook for insolvency risk among companies in Indonesia. 63% of businesses, primarily in the automotive sector, expect the rate of insolvencies to increase during the next 12 months. The rest are more cautious about making predictions.
   
• The main concern looking ahead for Indonesian businesses revolves around significant economic challenges, with revenues impacted by a decline in the commodity boom. Geopolitical tensions and global economic instability are
  also severe worries in the short-term and long-term.

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 2024 survey results for Indonesia, please download the full report available in the related documents section below. The regional report for Asia is also available for download in the section below.

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