Industrial Confidence Index Rises To 52.75 In October 2024, These Two Subsectors Are Contributors

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

JAKARTA - The Ministry of Industry (Kemenperin) reported that the industrial confidence index (IKI) in October 2024 was at 52.75.

This value increased by 0.27 points compared to September 2024 which was 52.48.

The value of IKI in October also increased by 2.05 points when compared to the value of IKI in October in 2023 which was 50.70.

"IKI in October 2024 is worth 52.75 which means above 50 and we can call it at the expansion level," said Ministry of Industry spokesman Febri Hendri Antoni Arif in the release of IKI October 2024 in Jakarta, Thursday, October 31.

Febri explained, of the 23 processing industry sub-sectors analyzed, there is one sub-sector that has contracted.

The contractioning industries are the wood industry, wood goods and complications (excluding furniture).

Meanwhile, the two sub-sectors with the highest value of IKI are the beverage industry and the non-metallicity goods industry.

"90 percent more sub-sectors under the expansionary non-oil and gas processing industry in October 2024," he said.

In terms of variables, there is a slowdown in the expansion of the new order variable IKI value of 0.33 points from 51.95 in August 2024 to 51.62 in September 2024.

This is due to the weakening of export orders due to sluggish global market conditions.

Even so, Febri ensured, domestic orders for the manufacturing industry will increase in October 2024.

According to him, the increase in demand was triggered by optimism from industry players for the inauguration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka and the election of the Red and White Cabinet.

"The industry sees this as something positive to make them optimistic about running their industrial business in the future," he said.

According to Febri, this can also be seen from the optimism of business actors towards their business conditions in the next 6 months to 73.3 percent in October 2024.

This ended the decline in optimism since July 2024.

In addition, 21.8 percent of business actors stated that their business conditions were stable for the next 6 months.

This figure is down 1.3 percent compared to the percentage of the previous month.

Then, the percentage of pessimism of the views of business actors on business conditions in the next 6 months is 4.9 percent or decreased from the previous percentage of 5.4 percent in September 2024.

Furthermore, in contrast to new order variables that are expansionary but slow down, the value of IKI variable product inventory has increased by 0.01 points to 55.86 from 55.85.

Meanwhile, the value of IKI, the production variables, again experienced an expansion or an increase of 1.44 points from 51.12 in August to 52.56 in September 2024.