JAKARTA - The Ministry of Industry (Kemenperin) plans to form an Industrial Trust Index (IKI) which is one of the latest industrial conditions monitoring activities at the end of November 2022.
In the formation of IKI, the Ministry of Industry was supported by academics, researchers from universities, and research institutions.
The formation of IKI itself is influenced by global economic conditions, where the world is still faced with uncertainty that puts strong pressure on the economy.
"The Ministry of Industry then formed the Industrial Trust Index (IKI) which is one of the latest industrial conditions monitoring activities. IKI is similar to the Purchasing Managers' Index (PMI) released by S&P Global and the Prompt Manufacturing Index Bank Indonesia (PMI BI)," said Head of the Data and Information Center (Pusdatin) of the Ministry of Industry, Wulan Aprilianti Permatasari in a written statement, Friday, November 4.
The projected global economic growth is predicted to be lower than previously predicted, including developed countries, such as the United States, Europe, and China, which are also the main destination markets for Indonesia's exports.
The global economic slowdown was also shown with a tendency to decrease the value of the Purchasing Managers' (PMI) in September-October 2022 due to rising inflation, supply chain disruptions, geopolitical tensions, and weather influences.
Later, said Wulan, IKI reporting aims to find out the perceptions of industry players regarding industrial conditions in the reporting month and business prospects in the next six months.
"Industrial companies must report their industrial activities through online questionnaires from 12 to 23 every month through the SIINAs portal. Currently, the number of SIINAs account owners is 36,039 people and they are references from IKI," he explained.
Wulan assessed that IKI can be useful as an indicator of reliable, up-to-date, complete, and detailed industry assessment, and can diagnose problems early on to the industrial sub-sectors so that they can be resolved more quickly and accurately.
IKI is also considered to be able to help anticipate greater losses if there are problems in the industry and describe the industrial business climate to be able to find out the business prospects for the next period in the industrial sector in Indonesia.
"The Ministry of Industry hopes for the support of business actors, both in the implementation of reporting and the use and development of the next Industrial Trust Index (IKI)," concluded Wulan.
Previously, the Minister of Industry Agus Gumiwang Kartasasmita said that manufacturing PMI around the world had decreased, even some developed industrial countries had a value of below 50 or not being expansive.
The effect of global inflationary pressure on product selling prices directly weakens purchasing power, including the Indonesian export destination market and has begun to impact the domestic market.
In addition, almost all countries responded to the inflation with a policy of raising interest rates so that purchasing power was weaker and reduced the interest of business actors to take capital loans or expansion.
Therefore, in the midst of global economic uncertainty, it is necessary to monitor industrial conditions which are the main pillars of the national economy.
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