Industry Confidence Index July 2024 Slows To 52.40 Points, Textile Sector Still Sluggish

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

Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif said the industry confidence index (IKI) in July 2024 was at 52.40 or slowed down by 0.10 points compared to June 2024 which was 52.50.

"Industrial Trust Index (IKI) in July 2024 is worth 52.40. That means a slowdown of 0.10 points compared to IKI in June 2024 of 52.50," said Febri in the release of IKI July 2024 at the Ministry of Industry Building, Jakarta, Wednesday, July 31.

Febri explained, of the 23 sub-sectors analyzed, there were three sub-sectors that experienced contraction.

The contractioning industries are the textile industry, the paper and paper goods industry as well as the machine and equipment industries that are not included in others.

Febri suspects that the policy of relaxing imports issued by the government and releasing 26,000 containers at the port has an effect on the weakening of IKI. One of the most affected is the textile industry.

"After the Minister of the Economy (Airlangga Hartarto) and the Minister of Finance (Sri Mulyani) released containers, the value of IKI experienced a slight decline, especially in the textile industry," he said.

Meanwhile, Secretary of the Directorate General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Kris Sasono Ngudi Wibowo said, this is a contraction in the textile sector that occurs twice in a row.

This month's decline is quite deep from 49 to 47 points.

"This month is somewhat deeper in its contraction than before. Judging from the components forming IKI, the most visible is the new order component," he said.

As for the variables forming IKI, there is a slowdown in the value of the new order variable IKI, which is 1.82 points to 52.92.

Meanwhile, the value of IKI product inventory variables increased by 0.48 points to 55.53. In addition, production variables also increased by 2.45 points, but still had a slight contraction of 49.44.

In general, the manufacturing industry's business activities in July 2024 increased by 1.2 percent.

The percentage of respondents who answered their business conditions increased and stabilized from 75.4 percent to 76.6 percent.

However, the condition of this business activity was lower than the conditions in June last year which reached 77.4 percent.

"Then, the percentage of business actors who stated that their business conditions had improved decreased by 0.7 percent to 30.7 percent when compared to June 2024, which was 31.4 percent or greater than those that said it had decreased by 23.3 percent," he said.

In July 2024, it is optimistic that business actors will decline in business conditions in the next 6 months compared to June 2024, which is 71.9 percent.

The trend of increasing industrial optimism since the end of 2023 has stalled in May 2024.

Furthermore, 22.1 percent of business actors stated that their business conditions were stable for the next 6 months.

This figure increased by 1.1 points compared to the previous month's figure.

The percentage of pessimism of the views of business actors on business conditions in the next 6 months is 6.0 percent, or has increased again after continuing to decline since December last year.