Industrial Confidence Index Drops To 52.3 In April 2024, Ministry Of Industry Spokesperson Calls Seasonal Factors After Eid

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif. (Photo: Theresia Agatha/VOI)

JAKARTA - The Ministry of Industry noted that the industrial confidence index (IKI) in April 2024 was at 52.3.

This figure is slowing down compared to March 2024, which is 53.05.

"IKI in April 2024 is still in the expansion phase, which is 52.30. So, slightly slower compared to IKI in March 2024, the difference is 0.75 points," said Ministry of Industry spokesman Febri Hendri Antoni Arif in the April 2024 release which was monitored online, Monday, April 29.

Febri said the cause of the decline in IKI in the April 2024 period was due to seasonal factors.

"Because during April (2024) there was a long vacation and the industry may have received a little order from before. So, the components have decreased and it has an impact on IKI as a whole, which is down 0.75 points," he said.

Despite slowing down, Febri said, industrial performance is still improving along with 19 sub-sectors that are still expansionary and have an 87.7 percent contribution to the GDP share of the 2023 non-oil and gas processing industry.

He also said that as many as four sub-sectors experienced contraction and contributed 12.3 percent to the GDP share of the 2023 non-oil and gas processing industry.

"The four sub-sectors are electronics, the base metal is close to 50, other means of transportation and furniture. Of the four, we see the numbers are not far from 50 but below 50 slightly," said Febri.

On the same occasion, Febri said, business activities in general decreased slightly in April 2024.

According to him, the percentage of business actors who stated that their business conditions had increased to 29.4 percent and those who stated that their business conditions were stable were 44.5 percent.

"This figure is decreasing when compared to March. Business actors who stated that their business conditions had increased to 32.2 percent and those who stated that their business conditions were stable at 44.2 percent," he said.

Febri said that business actors are optimistic that industrial business conditions will increase in the next six months.

This is in line with the decision of the Constitutional Court (MK) regarding the dispute over the presidential election (pilpres) some time ago and seeing several global economic turmoil.

"Although the global issue arose, industrial business actors are still optimistic going forward. We see that business actors from our report regarding the rupiah exchange rate still hope to be stable," he added.