Industry Confidence Index Ups Thin To Level 52.95 In November 2024

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 November 2024 was at 52.95.

This value increased by 0.20 points compared to October 2024 which was 52.75.

IKI November's achievement also increased by 0.52 points when compared to the value of IKI November in 2023.

"Indeks Percaya Industri November 2024 mencapai 52,95 atau perpandaan, ini meningkat 0,20 poin dibandingkan dengan Oktober 2024 atau meningkat 0,52 poin dibandingkan dengan November tahun lalu," ujar Juru Bicara Kemenperin Febri Hendri Antoni Arif dalam keterangan tertulisnya, Kamis, 28 November.

Febri explained that the increase in IKI in November was supported by an increase in the expansion of the new order index by 2.58 points to 54.2 and an expansion of the inventory index by 54.68, although it decreased by 1.18 points from last month.

It is known, the production index this month still experienced a contraction below 50 after successive expansion. The production index experienced a slowdown of 2.84 points when compared to the previous month, which was 49.72.

Febri assessed that this happened because of the strengthening of the US dollar exchange rate against the rupiah which resulted in an increase in the price of imported raw materials. Meanwhile, producers sell their products in rupiah.

On the other hand, according to Febri, the increase in IKI value was driven by the response of the domestic industry to President Prabowo Subianto's new government program such as downstreaming industry and free nutritious feeding. Meanwhile, the export industry is still facing weakening demand.

He added that the value of IKI this month was supported by an increase in the value of IKI from three sub-sectors with the highest value, namely the electricity equipment industry, beverage industry and the printing and reproductive media industry.

"The completion of the PLN project at the end of the year and the increase in the procurement of battery charging equipment or chargers for Public Electric Vehicle Charging Stations (SPKLU) for electric vehicles are suspected of encouraging the improvement in the performance of the electric equipment industry," said Febri.

Even so, there are two sub-sectors that have contracted, namely other processing industries as well as repair and installation of machinery and equipment.

Other processing industries are dominated by export products such as fake eyelashes, jewelry, children's toys, sports equipment and musical instruments that have experienced a decline in exports due to the economic slowdown of export destination countries.

Meanwhile, in the repair and installation sub-sector of machinery and equipment, the contraction occurred allegedly due to a decrease in domestic demand due to increased efficiency carried out during the position of deep global uncertainty.