Industrial Confidence Index Rises To 52.89 In July 2025, But Contraction Production

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

JAKARTA - The Ministry of Industry noted that the Industrial Trust Index (IKI) in July 2025 reached 52.89 points.

This figure is up 1.05 points from IKI in June 2025 which was recorded at 51.84.

"IKI in July 2025 reached 52.89, still expansionary with an increase of 1.05 points compared to June 2025 which amounted to 51.84," said Ministry of Industry spokesman Febri Hendri Antoni Arif in the release of IKI July 2025 at the Ministry of Industry Building, Jakarta, Thursday, July 31.

In addition, when compared to IKI in June last year at 52.40, the amount of IKI July 2025 also increased by 0.49 points, namely at 52.89.

Febri added, this July there were 22 sub-sectors experiencing expansion. The contribution of 22 sub-sectors to gross domestic product (GDP) was 99.9 percent.

In other words, IKI sub-sectors with expansive status are the largest contributors to their GDP.

"The two sub-sectors with the highest value of IKI are the other transportation equipment industry and the tobacco processing industry," he said.

In addition, this month, only one sub-sector recorded a contraction, namely the repair and installation of machinery and equipment.

He revealed, based on the IKI-forming variables, there are three things, namely new order variables, production variables, and product inventory variables.

"In July 2025, the value of the new order variable IKI increased by 0.19 points or reached 54.40. Furthermore, the value of IKI product inventory variables also increased by 1.29 points or reached 54.99," explained Febri.

"The value of IKI production variables is still contracting, but it has increased by 2.35 points or reached 48.99. What does this mean? If this is read, the demand for manufacturing products in July will increase. There is a lot of stock, but the production will contract," he continued.

He explained, IKI from export-oriented industrial companies in July was 53.35, an increase of 1.16 points from the previous month of 52.19.

Then, IKI for industries that rely on the domestic market in July 2025 recorded 52.16, meaning expansion and an increase from the previous month of 51.32.

"So, it can be seen that Indonesia's export-oriented manufacturing industry has a much better performance than domestic market-oriented industries, but both are still at an expansive status," he explained.

Furthermore, said Febri, in general, business activities in July 2025 are relatively good, there are 77.1 percent of companies that convey that their business activities are improving and stable.

Then, 31.2 percent of respondents stated that their business was good and 22.9 percent of the company said their business conditions had decreased in July 2025.