Banking delays fuel late payments for 25% of Indonesian firms

Nine in 10 companies surveyed received overdue bills from customers.

Banking delays are the third most common reason business customers in Indonesia pay invoices late, cited by 25% of companies surveyed, according to the 2026 Atradius Payment Practices Barometer.

Customer cash flow problems were the main cause of late payment, reported by 62% of respondents, followed by goods or services not being delivered as agreed at 30%. Banking delays ranked third, just ahead of disputes over quality at 24%. 

Late payment remains common amongst Indonesian businesses. Nine in 10 companies surveyed reported receiving late payments, whilst around one-third of business-to-business receivables were overdue. 

Mid-sized companies appeared to have the highest exposure to late payment. 

The survey found that 54% of respondents had between 1% and 30% of their B2B invoices paid late. 

A further 26% said between 31% and 60% of invoices were late, whilst 10% reported that between 61% and 100% were paid late. Another 10% reported no late invoices. 

Most overdue invoices were settled within two months. Of past-due invoices, 54% were paid within 30 days after the due date and 24% within 31 to 60 days. 

Another 16% were paid between 61 and 90 days late, whilst 6% remained unpaid for more than 90 days. 

Atradius said customer cash flow pressure was a bigger cause of payment delays in Indonesia than across the wider Asian region. 

Indonesian companies were less likely to report delays caused by internal processes such as complicated payment procedures, approval bottlenecks and invoicing errors. 

Payment delays are also affecting companies' own finances. Nearly three in five, or 59%, said customer payment risk had reduced the cash available for their operations. 

Some 45% reported a greater need for external financing, 38% said investment was limited and 34% reported difficulties with cash flow planning. 

Bad debts were also reported across the survey. Some 27% of respondents said bad debts were below 1% of receivables, whilst 25% put the figure at between 1% and 2%. 

Another 32% reported bad debts of between 2% and 5%, and 16% said more than 5% of receivables had become bad debt. 

Just over 40% of sales by Indonesian companies to B2B customers are currently made on credit, with the remainder paid upfront. Atradius said Indonesian suppliers have generally kept payment terms within two months, with a slight preference for shorter terms. 

The survey covered 240 companies in Indonesia and was carried out in the second half of the second quarter of 2026.

Respondents included businesses from the services, industry, construction and trade sectors. Across Asia, 2,145 businesses took part in the wider survey.