JAKARTA - The Ministry of Industry (Kemenperin) reported that the industrial confidence index (IKI) in January 2025 was at 53.10.

This value increased by 0.17 points when compared to December 2024 which was 52.93.

IKI's achievement in early 2025 also increased by 0.75 points when compared to the value of IKI January in 2024, which was 52.35.

"Industrial confidence index in January 2025 reached 53.10 or expansion, this increased by 0.17 points compared to December 2024 or an increase of 0.75 points compared to the value of IKI in January last year," said Ministry of Industry spokesman Febri Hendri Antoni Arif in the release of IKI January 2025 in Jakarta, Thursday, January 30.

Of the 23 processing industry sub-sectors analyzed, there are 20 sub-sectors experiencing expansion and 3 contraction sub-sectors.

He said, the two sub-sectors with the highest value of IKI came from other transportation equipment industries and the electric equipment industry.

Meanwhile, the three sub-sectors that experienced the deepest contraction were the beverage industry, the computer industry, electronic goods and optics and other processing industries.

Febri assessed that the industry in January 2025 slightly braked its production rate because there were still a lot of stock of products in their respective warehouses.

The industry was observed to increase its production in December 2024 to anticipate an increase in Value Added Tax (VAT) by 12 percent by 2025.

"This is natural because the industry needs to anticipate an increase in VAT of 12 percent. However, the President and Minister of Finance (Minister of Finance) have announced an increase in VAT only for luxury goods. That is why the industry is holding back its production slightly in January 2025," he said.

In January 2025, there was an acceleration of the expansion of the value of the new order variables by 2.03 points or reaching 52.7.

On the other hand, the value of the production variable IKI is still expanding despite a slowdown of 2.14 points or reaching 53.39.

The value of product inventory IKI also experienced a slowdown in expansion of 1.0 points or reached 53.58.

According to Febri, business activities in general are still good, where business activities in general increased slightly with 76.8 percent of respondents conveying that their business activities were improving and stable.

"Industrial proportions that stated that their business conditions in January 2025 improved by 30.3 percent, an increase of 0.5 percent. Meanwhile, the percentage of respondents who answered their business conditions was stable was 46.5 percent," he said.

On the other hand, the percentage of business actors who stated their business conditions decreased in January 2025, or decreased to 23.2 percent.

As for January 2025, the optimism of business actors for their business conditions in the next 6 months has decreased compared to December 2024, which is 72.5 percent.

This figure decreased by 0.8 percent compared to the percentage of the previous month.

"A total of 21.8 percent of business actors have stated that their business conditions are stable for the next 6 months. The percentage is pessimistic about the view of business actors on business conditions in the next 6 months by 5.7 percent, an increase of 0.2 percent compared to the previous percentage," he said.


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