B2B payment practices trends, Indonesia 2024

Publications

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.

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.

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.