Industry Confidence Index In September 2024 Slightly Rises To 52.48

Industry (between)

JAKARTA - The Ministry of Industry (Kemenperin) conveyed that the industrial confidence index (IKI) in September 2024 was at 52.48.

This was conveyed by the Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif, in the IKI September 2024 release agenda at the Ministry of Industry Building, Jakarta, Monday, September 30.

"IKI in September 2024 reached 52.48. And we hereby state that this manufacturing industry in September 2024 is at an expansion level," said Febri.

"When compared to IKI August 2024, IKI in September tends to stagnate or almost the same," he continued.

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

The contractioning industries are the computer, electronic and optical goods industry as well as other processing industries.

"We see that the electronics industry is still suffering because there are still many electronic imported products entering Indonesia, either legally or privately," he said.

Based on his side's monitoring, said Febri, the utilization of the electronics industry is always below 50 percent and it has been going on for a long time.

"Then it was further exacerbated by the enactment of the Minister of Trade 8 of 2024 which freed the HS code regarding electronic goods," said Febri.

Thus, he continued, the electronics industry is also very difficult to move up to the expansion level. Febri also hopes that in the future there will be investment for the electronics industry.

"We hope that in the future there will be investment upstream, especially in the semiconductor industry, even though our country, yes, is still lagging behind neighboring countries," he said.

As for the variables forming IKI, there is a slowdown in the value of the new order variable IKI, from 54.66 in August 2024 to 51.95 this September.

Meanwhile, the value of IKI product inventory variables also increased by 0.31 points to 55.85. On the other hand, the value of IKI production variables expanded by 4.58 points to 51.12 this September.

In general, the manufacturing industry's business activities in September 2024 decreased by 3.8 percent to 31.0 percent.

The percentage of respondents who answered that their business conditions had increased and stabilized from 79.1 percent to 77.4 percent.

"Then, the percentage of business actors who stated that their business conditions had decreased in September 2024 rose to 22.6 percent," explained Febri.

In September 2024, the optimism of business actors for their business conditions in the next 6 months will decrease again compared to August 2024, which is 71.5 percent.

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

Furthermore, 23.1 percent of business actors stated that their business conditions were stable for the next 6 months. This figure increased by 0.6 percent when compared to the percentage of the previous month.

Persentase pessimism of the views of business actors on business conditions in the next 6 months reached 5.4 percent. This figure is down from 5.9 percent in August 2024.