Industry Confidence Index August 2024 Stagnant At 52.40, Textile Sector Still Not Rise

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

BOGOR - Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif said the industrial confidence index (IKI) August 2024 was at 52.40. IKI's achievement did not increase or the same as last July.

"IKI in August 2024 reached 52.40, there is no difference with the value of IKI July 2024. However, it slowed down by 0.82 points compared to last year's IKI value of 53.22," said Febri in the release of IKI August 2024 at the ASTON Sentul Lake Resort & Conference Center, Bogor, West Java, Thursday, August 29.

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

The contractioning industries are the textile industry, the paper industry and paper goods as well as other processing industries.

"The textile industry is still contracting for three consecutive months starting in June, since the enactment of the Minister of Trade Regulation 8 of 2024. Likewise, the paper industry and paper goods contract for two consecutive months and other processing industries have turned into contractions," he said.

"The paper industry and paper items have contracted because we consider that there is a flood of imports of paper goods from oversupply paper producing countries," he continued.

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 has occurred three times in a row.

However, he said, the value of IKI for the textile industry has been much better this month, from 47.79 in July to 49.52 this August.

"So, we are very optimistic that in the future it will be better. Because we have done some tools, yes, related to textiles,"

As for the variables forming IKI, there is an acceleration of the value of the new order variable IKI, which is 1.74 points to 54.66.

Meanwhile, the value of the product inventory variables also increased by 0.01 points to 55.54. On the other hand, the value of the production variable IKI experienced a contraction of 2.90 points to 46.54.

In general, the manufacturing industry's business activities in August 2024 increased 4.1 percent to 34.8 percent.

The percentage of respondents who answered that their business conditions had increased and stabilized from 76.6 percent to 79.1 percent. This percentage is the highest figure since IKI was released.

"Then, the percentage of business actors who stated that their business conditions had decreased will continue to decline over the past 5 months to 20.9 percent in August 2024," explained Febri.

In August 2024, the optimism of business actors regarding their business conditions in the next 6 months will decrease again compared to July 2024, which is 71.6 percent.

This decline in optimism continued to decline from the highest optimism rate in June 2024.

Furthermore, 22.5 percent of business actors stated that their business conditions were stable for the next 6 months. This figure increased by 0.4 percent compared to the percentage of the previous month.

The percentage of pessimism of the views of business actors on business conditions in the next 6 months is 5.9 percent. This figure is down slightly from 6.0 percent in July 2024.