Significantly Increasing, Industry Trust Index June 2023 Reaches 53.93 Percent

Spokesperson for the Ministry of Industry (Kemenperin), Febri Hendri Antoni Arif. (Photo: Doc. Antara)

JAKARTA - The Ministry of Industry recorded a significant increase in the Industrial Trust Index (IKI) in June 2023.

"Industrial Trust Index (IKI) in June 2023 reached 53.93, an increase of 3.03 points compared to May 2023. This figure is also the highest since IKI was released last November 2022," said Spokesperson for the Ministry of Industry (Kemenperin), Febri Hendri Antoni Arif, quoted Wednesday, June 28.

Febri said that all IKI-forming variables in June 2023 were expanding. New order variables increased by 4.97 points to 54.81, production variables increased by 4.85 points to 54.86, while inventory variables decreased by 4.56 points to 50.34.

"Domestic orders are still the dominant factor affecting the new order variable index," said Febri.

He added that the increase in IKI in June 2023 was driven by an increase in IKI in 21 industrial sub-sectors. Not only did IKI's value increase, several sub-sectors were also observed to have experienced expansion after previously contracting.

"Of the 23 industrial sub-sectors, there are eight sub-sectors that have changed from contraction to expansion in June 2023," he continued.

The eight sub-sectors are the paper and goods industry from paper, the rubber industry, rubber and plastic goods, the printing and reproduction industry of recorded media, and the tobacco processing industry.

Furthermore, the non-metallic excavation goods industry, the pharmaceutical, chemical and traditional medicine industry, the finished clothing industry, and the basic metal industry.

Three sub-sectors that are still experiencing contraction, namely the textile industry, the skin industry, leather and footwear goods, and other processing industries.

"For June, the industry sub-sector with the highest value of IKI is the motor vehicle industry, trailers and semi-trials, the food industry, and the beverage industry," explained Febri.

Regarding other processing industry groups that are still experiencing contraction, Director of Aneka Industry and Small and Medium Chemical, Clothing and Crafts Industry, Ni Nyoman Ambareny conveyed the problems faced, especially in export-oriented industries, including the music equipment industry, toy industry, stationery industry, the sports equipment industry, and the fake eyelash industry.

"The main problem faced is that the economic conditions of the export destination countries, namely the European Union and the United States, have not returned to normal, so the demand for products included as tertiary products has not yet recovered," said Ambareny.

In order to maintain the domestic market through the empowerment of Small and Medium Industries (IKM), the Ministry of Industry has made several efforts, including facilitating Domestic Component Level (TKDN) by self-assessment for small industries, the Proudly Made in Indonesia campaign, as well as synergies with agencies outside the Ministry of Industry in exploring exports to non-traditional markets.

The same problem is also faced by the textile industry and the skin industry, leather and footwear goods.

The new school year and new investments in industries experiencing contraction have raised hopes for improvements in IKI value for the next two months.

"In addition, in this period the clothing industry has experienced despansion, supported by export market conditions for the United States which are quite friendly," Director of the Ministry of Industry for Textile, Skin and Footwear, Adie Rochmanto Pandiangan.

Meanwhile, regarding textile products, which last month experienced an increase in imports of 70.49 percent, the Ministry of Industry has proposed that supervision be carried out at the Bonded Logistics Center (PLB) and the market place.

The value of IKI in June 2023 has rebounded after declining in the previous month, due to consumption behavior during the Eid al-Fitr holiday unlike expectations As a result, last May, the industry still had a lot of product supplies.

With the supply of these products exhausted, the industry re-produced in June.