The Performance Of The Indonesian Industry In June 2024 Remains Steady, Only The Textile Sector Is Sluggish

Manufacturing Industry (Photo: Antara)

JAKARTA - The Ministry of Industry (Kemenperin) released the industrial confidence index (IKI) in June 2024. Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said IKI June 2024 was at 52.50, or did not change compared to May 2024.

"IKI in June 2024 reached 52.50 or still expansion. There is no difference in the value of IKI with May 2024. Furthermore, this value has slowed down by 1.43 points compared to last year's IKI value of 53.93," said Febri in the release of IKI June 2024 which was monitored online, Thursday, June 27.

Febri explained, of the 22 industrial sub-sectors analyzed, only one sub-sector experienced contraction, namely the textile industry. Meanwhile, the highest expansion was experienced by the finished clothing industry, the skin industry, goods and footwear as well as other transportation equipment industries.

"Of the 23 processing industry sub-sectors analyzed, only 1 sub-sector experienced a contraction with the contribution of sub-sectors that experienced an expansion of the GDP for the non-oil and gas processing industry in the first quarter of 2024 of 98.6 percent," he said.

From the IKI-forming variables, Febri said, there was an increase in the value of the new order variable IKI by 1.62 points to 54.78. The value of IKI product inventory variables also increased by 0.46 points to 55.05. Meanwhile, production variables actually experienced a contraction of 3.02 points to 46.99.

"In June last year, new order variables increased their expansion quite large, up 4.97 until changing the level from a contraction of 49.84 to an expansion of 54.81. Normally in June the indicator of industrial business activities is the highest," said Febri.

In general, he said, the manufacturing industry's business activities in June 2024 increased by 1 percent. The percentage of respondents who answered that their business conditions had increased and stabilized also increased from 74.4 percent to 75.4 percent. However, the condition of this business activity was lower than the conditions in June last year, which reached 78.8 percent.

"The percentage of business actors who stated that their business conditions had improved by 1.2 percent reached 31.4 percent. It increased compared to May 2024 by 30.2 percent or greater than those that said it had decreased, which was 24.6 percent. Business actors who stated that their business conditions were stable in June decreased by 0.2 percent to 44.0 percent from 44.2% percent," he said.

Meanwhile, the optimism of business actors for the business conditions in the next 6 months is the same as May 2024, which is 73.5. The trend of increasing industrial optimism since the end of 2023 has stopped in June 2024.

Furthermore, 21.0 percent of business actors stated that their business conditions were stable for the next 6 months. This figure increased by 0.2 points compared to the previous month's figure.

"Finally, the percentage of pessimism of the views of business actors on business conditions in the next 6 months is 5.4 percent, a decrease compared to May 2024 of 5.7 percent. This value is the lowest pessimism since IKI was released," he added.