Industry Trust Index April 2023 Down To 51.38, But Still Expansive

Industrial illustration (Doc. Antara)

JAKARTA - The Ministry of Industry noted that the Industrial Trust Index (IKI) in April 2023 remained at an expansionary level. The achievement was 51.38 or decreased by 0.49 compared to March which was 51.87.

"Industrial Trust Index (IKI) in April 2023 is still in the expansion phase (51.38), although it has slowed down by 0.49 points compared to March 2023 (51.87)," said Ministry of Industry spokesman Febri Hendri Antoni in Jakarta, on Friday, April 28.

Febri said that the slowdown in the value of IKI was due to 13 of the 23 sub-sectors of the processing industry experiencing a decrease in the value of IKI.

With the decline in IKI in April, breaking the trend of increasing IKI since November 2022 with IKI 50.89, then increasing in December in the same year with the figure of 50.90.

Then, in January it increased to 51.54, February which again increased to 52.32, March which also decreased to 51.87, until finally slowing down in April to 51.38.

"Yes, so why did IKI decline in April 2023 because in the eight sub-sectors whose IKI contractions decreased," he said.

Meanwhile, the average increase in IKI value in 15 manufacturing industry sub-sectors whose expansion this month occurred in production variables from 50.69 in March 2023 to 52.08 in April 2023 or 1.39.

He said, as many as 15 sub-sectors of the manufacturing industry, which are classified as well as the expansion level, with GDP shares for the non-oil and gas processing industry of 80.2 percent. Meanwhile, eight sub-sectors are still at the contraction level with GDP shares of 19.8 percent.

"So, the number of sub-sectors experiencing expansion has increased, but their GDP share tends to decline. In April 2023, the GDP share was 80.2 percent, but in March 2023 there were 14 sub-sectors for share-GDP expansion 80.4 percent," said Febri.

According to Febri, the survival of the IKI manufacturing industry is in the expansion level because it is supported by industrial sub-sectors that are experiencing expansion, such as the food industry, the chemical and goods industry from chemicals, as well as the motor vehicle industry, trailers and semi trailers.

"Sub-sectors with large GDP share support IKI April 2023," he concluded.

For your information, the index is compiled from data and information from manufacturing companies spread over 23 types of industrial sub-sectors based on KBLI 2 digits.

The Ministry of Industry collects data and information online, which includes the development of industrial activities, the development of new order volume, development of production volume, development of product inventory volume, and business prospects in the next six months.