Industrial Confidence Index Increases To 53.55 Points, Signs Of Tough Manufacturing

JAKARTA - The Ministry of Industry (Kemenperin) noted that the Industrial Trust Index (IKI) in August 2025 rose again to 53.55 points, up 0.66 points compared to the previous month and 1.15 points on an annual basis, which is a sign that domestic manufacturing remains resilient.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said this development reflects the optimism and adaptive ability of the industrial sector in maintaining production sustainability, although overshadowed by a number of global and domestic challenges.

"IKI's strengthening this month is supported by an increase of two of its three forming variables, namely the order index up 2.98 points to 57.38 and product supplies increasing by 2.05 points to 57.04," Febri said as quoted by ANTARA, Friday, August 29.

Meanwhile, the production index variables were recorded at 44.84, down 4.15 points compared to July 2025 of 48.9.

"The decline in production variables is influenced by the attitude of a number of companies in several industrial sub-sectors that are holding back the production process (wait and see), delaying the purchase of imported or domestic raw materials and using the stock of raw materials purchased in previous months," said Febri.

Selain itu, lanjutnya, adanya pembatasan pasokan gas bagi industri pada bulan Agustus ini juga menjadi salah satu faktor pertimbangan bagi pelaku industri

Febri emphasized that one of the crucial issues that had influenced industrial performance in August was the problem of industrial gas supply from Certain Natural Gas Prices (HGBT).

According to him, gas prices have proven to be one of the vital instruments to maintain national industrial competitiveness. Competitive HGBT certainty not only affects production costs, but also long-term investment decisions in energy-intensive sectors such as fertilizers, petrochemicals, steel, and glass.

"In the autochemical industry we visited last week, it was revealed that their tax payments increased six times after they got HGBT gas supply," he said.

He expressed his appreciation to the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia for responding quickly to complaints from industry players affected by gas supply restrictions, by ensuring the assurance of gas supply stability, especially HGBT gas for industry.

We have also received reports from industry players that gas supply is now stable and prices are in accordance with existing regulations. We hope that with the fulfillment of these energy needs, the productivity of the industrial sector can recover immediately so that production continues to increase and the competitiveness of the national industry is maintained," said Febri.

The Ministry of Industry noted that of the 23 processing industry sub-sectors analyzed, 21 of them showed an expansion with a contribution of 95.6 percent to the Gross Domestic Product (GDP) of the non-oil and gas processing industry in the second quarter of 2025.

The two sub-sectors with the highest value of IKI are the Other Transport Equipment Industry and the Record Media Printing and Reproduction Industry (KBLI 18), driven by export orders and domestic demand.

Meanwhile, the two sub-sectors that experienced contraction were the Metal, Not Machinery and Equipment Industry (KBLI 25) and the Repair and Installation of Machines and Equipment (KBLI 33).

Secretary of the Directorate General of Chemical, Pharmaceutical, and Textile Industries of the Ministry of Industry, Sri Bimo Pratomo, said that in the metal, non-machine and equipment industry, the production and inventory variables have contracted due to the still stock of product supplies.

So that industry players reduce production capacity, even though orders increase.

The repair and installation sub-sector of machines and equipment has contracted because its business activities are highly dependent on the engine maintenance period of key industries, which in that month tended to decline.

This is reflected in contracting order variables.

Dari sisi pasar, IKI berorientasi ekspor pada Agustus 2025 mencapai 54,11, naik 0,76 poin dari Juli 2025 sebesar 53,35, didukung oleh kenaikan ekspor nonmigas sebesar 12,56 persen (yoy) pada triwulan II 2025.

Kenaikan ini menunjukkan daya saing produk manufaktur Indonesia di pasar global tetap terjaga, di tengah perluasan tarif resiprokal AS ke beberapa negara.

Sementara itu, IKI domestik naik 0,48 poin menjadi 52,64, mencerminkan permintaan dalam negeri yang kuat, sejalan dengan inflasi terkendali di 2,37 persen secara tahunan.

In terms of market, export-oriented IKI in August 2025 reached 54.11, up 0.76 points from July 2025 of 53.35, supported by an increase in non-oil and gas exports by 12.56 percent (yoy) in the second quarter of 2025.

This increase shows that Indonesia's competitiveness in manufactured products in the global market is maintained, amid the expansion of US reciprocal tariffs to several countries.

Meanwhile, domestic IKI rose 0.48 points to 52.64, reflecting strong domestic demand, in line with controlled inflation at 2.37 percent on an annual basis.