B2B payment practices trends, Indonesia 2024

Reports

Our survey of companies in Indonesia reveals key insights into current B2B corporate payment trends. Explore emerging dynamics that could shape the future of business transactions.

Silvia Ungaro

Senior Advisor

26 Sep 2024

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Indonesia cash flow concerns despite improved B2B payment behaviour

An improvement in B2B customer payment behaviour is a clear finding of our survey of Indonesian companies. Most businesses report that invoices are settled faster by customers than last year. Instances of improved payment patterns were often reported by chemical and automotive companies. However, the picture is not
uniformly positive, with 30% of companies, mainly in the steel/metals sector, saying payment practices remain relatively stable. Overall, an average of nearly 40% of all B2B invoices are currently overdue, while bad debts stand
at an average 5% of all B2B invoices. Despite reports of improved payment patterns from B2B customers, many Indonesian automotive companies indicate that they struggle with bad debts management, highlighting potential financial vulnerability across the sector.

Summary

A majority of companies in Indonesia report improved B2B customer payment behaviour in the past year, especially in the chemicals and automotive sectors. For 30% of businesses, notably in the steel/metals sector, payment practices have been relatively stable. Only a minority have seen a deterioration.
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, with the automotive sector particularly hard hit.
B2B customer behaviour is expected to improve in the coming year by 80% of companies in our survey of Indonesia. Most of the rest anticipate no significant change in payment practices, while only a minority foresee deterioration.

Economic and insolvency risks are major worries for Indonesian companies

An improvement in B2B customer payment behaviour is a clear finding of our survey of Indonesian companies. Most businesses report that invoices are settled faster by customers than last year. Instances of improved payment patterns were often reported by chemical and automotive companies. However, the picture is not uniformly positive, with 30% of companies, mainly in the steel/metals sector, saying payment practices remain relatively stable. Overall, an average of nearly 40% of all B2B invoices are currently overdue, while bad debts stand at an average 5% of all B2B invoices. Despite reports of improved payment patterns from B2B customers, many Indonesian automotive companies indicate that they struggle with bad debts management, highlighting potential financial vulnerability across the sector.