Processing Industry Has Slowed Down Throughout 2024, Ministry Of Industry: Global Conditions Are Not OK

Secretary General of the Ministry of Industry Eko SA Cahyanto. Photo: Theresia Agatha/VOI

JAKARTA - The Ministry of Industry (Kemenperin) has opened its voice regarding the slowing growth of the processing industry in 2024.

Secretary-General of the Ministry of Industry Eko SA Cahyanto said this could not be separated from the uncertainty-filled global economic conditions.

Based on data from the Central Statistics Agency (BPS), the processing industry grew by 4.43 percent in 2024 or lower than 2023 which was 4.64 percent.

Eko assessed that his party will continue to pay attention to aspects that could impact national economic growth in the future, both from macroeconomic and global conditions.

"We know that global conditions are not doing well, which will definitely have an impact on our industrial growth," Eko told reporters when met at the Ministry of Industry's office, Wednesday, February 5.

Eko emphasized that his party will also continue to maintain industrial performance growth in all sectors. He emphasized that currently the industry's performance continues to show positive growth in the last two months.

This is reflected in the industrial confidence index (IKI) and the Purchasing Managers' Index (PMI) of the Republic of Indonesia which are in the expansionary zone.

"It is seen that in January it has increased with convincing numbers. Therefore, we are optimistic that this year we can achieve the growth target as we planned," said Eko.

As for the latest S&P Global report, Monday, February 3, the strengthening of the index can be seen from the increasing new output and demand variables.

This condition also triggers more labor absorption.

In addition, the industrial confidence index (IKI) in January 2025 also strengthened to 53.10, up 0.17 points from the previous month, which was 52.93.

The value of IKI also increased by 0.75 points compared to IKI January 2024 by 52.35.

There are 20 expansionary industrial sub-sectors, while the other three contracted, namely the beverage industry, the computer industry, electronic goods and optics as well as other processing industries.

Subsectors that expand have a contribution of 95.5 percent to gross domestic product (GDP) of the non-oil and gas processing industry in the third quarter of 2024.