Industrial Confidence Index Rises To 52.56 In February, Successful Elections Become Encouragers

Manufacturing (photo: dock. Antara)

JAKARTA - The Ministry of Industry noted that the industrial confidence index (IKI) in February 2024 was at 52.56.

"IKI in February 2024 is 52.56. This means that it is in an expansion position, which also means an increase of 0.21 points compared to IKI January 2024 of 52.35," said Ministry of Industry spokesman Febri Hendri Antoni Arif in the release of IKI February 2024 at the Ministry of Industry office, Jakarta, Thursday, February 29.

Febri said that in February 2024, IKI also increased by 0.24 points when compared to the same period last year.

"Compared to IKI in February last year, IKI in February 2024 also increased by 0.24 points or in February 2023 IKI by 52.32," he said.

He added that all IKI components, namely the new order variables, reached the level of 53.14, production of 50.45 and product availability of 54.28. This made IKI in February expand.

The expansion of new order variables has increased due to an increase in domestic and foreign orders for procurement of goods/services and retail sales.

"The GDP sharing of the non-oil and gas processing industry which is experiencing an expansion of 87.9 percent. This means that all sub-sectors from 21 sub-sectors whose IKI we measure have an expansion status. So, many of these large sub-sectors are expanding and IKI globally is increasing," he said.

In general, Febri said that IKI's expansion was in line with the percentage of business actors who expressed optimism that business conditions increased by 31.7 percent in February 2024. This was also supported by a positive response from industrial business actors to the results of the 2024 general election (election).

"So, IKI increased in February. We read that industrial business actors responded positively to the results of the 2024 election, yes, the process went well. Those who had been waiting and seeing had started producing, the production plans had become more," said Febri.

"Then, in the near future we will enter the fasting month and then Eid. Several industrial sub-sectors will begin to produce anticipating entering the fasting month and Eid, especially in the food and beverage industry, transportation and others," he continued.

In the future, said Febri, his party estimates that IKI will be much higher in March than this February.

"We estimate that IKI in March will be much higher due to increased production in industry and orders," he explained.

In February 2024, the optimism of business actors for their business conditions in the next 6 months will increase to 71 percent or higher than in January 2024, which is 67.6 percent. "This value is the highest optimism since IKI was released," he said.

As many as 21 percent of business actors stated that their business conditions were stable for the next 6 months.

"Finally, the percentage of pessimism of the views of business actors on business conditions in the next 6 months is 7.9 percent. This value is the lowest pessimism since IKI was released," he added.