Warning From The Ministry Of Industry: Industry Is Urged To Be Aware Of China's Economic Reduction

Illustration of Rupiah (Photo: dock. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) appealed to domestic industries to be aware of the impact of the weakening of the Chinese industry. This is because China is still an export destination as well as a source of imports of Indonesian industrial raw materials.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said global market conditions would affect export performance with a portion of 30 percent and 70 percent of manufactured products absorbed by the domestic market.

"Right, we have a lot of raw materials from China, we have to pay attention to China, the impact is big, but our manufacturing industry is more domestically," Febri told reporters at the Ministry of Industry Building, Jakarta, on Thursday, August 31.

Even so, Febri assessed that people's purchasing power is still maintained. This is in line with the Consumer Confidence Index (IKK) which was at an optimistic level in June 2023 of 123.5.

"If we look at the optimism of the industry, it will still be strong. If the industry is optimistic, right, products mean they are still being bought," said Febri.

In August 2023, continued Febri, in general business actors are still optimistic about the business conditions for the next six months, with a total of 66 percent.

The majority of respondents who answered were optimistic in expressing their confidence in market conditions that would improve, and trust because of the central government's better policies.

As many as 24.8 percent of business actors stated that their business conditions were stable for the next six months, and 9.2 percent of business actors expressed pessimism for business conditions in the next 6 months.

"The level of pessimism for business actors is always below 10 percent during the last five periods," he added.