Indonesia's Industrial Trust Index Capai 50.90 In December 2022

Ministry of Industry spokesman Febri Hendri Antoni Arif. (Photo: Doc. Ministry of Industry)

JAKARTA - The Ministry of Industry (Kemenperin) released the value of the Industrial Trust Index (IKI) in December 2022, which is at 50.90, which indicates the manufacturing industry is still in the expansion phase.

"This figure has increased by 0.01 compared to IKI in November 2022, which is 50.89," said Ministry of Industry spokesman Febri Hendri Antoni Arif in Jakarta, Friday, December 30.

From the results of IKI's calculation in December 2022, he said, there were 11 sub-sectors that experienced an expansion with a contribution to Gross Domestic Product (GDP) reaching 74.9 percent in the third quarter of 2022.

This figure increased when compared to November 2022, which only contributed 71.3 percent.

According to Febri, the main reason for the increase was because the Chemical and Chemical Materials Industry sub-sector contributed to the GDP of the non-oil and gas processing industry by 7.2 percent, so that the value of the IKI increased from contraction to expansion.

Furthermore, said Febri, there were 12 sub-sectors that experienced contractions with a contribution to GDP of 25.1 percent.

"This means that the sectors experiencing this expansion are sectors with large GDP sharing," he said.

In general, Febri said, as many as 42.6 percent of industrial companies from 8,277 industries answered that their business conditions were stable in December 2022 compared to November 2022.

While as many as 29.5 percent others answered an increase.

"In December 2022, all IKI-forming variable indexes, namely new orders, product supplies, and production, experienced expansion," he said.

The domestic order is the dominant factor that affects the new order variable index.

This is related to the value of the production variable index.

Meanwhile, order variables are the dominant factor in the production variable index and product inventory.

Previously, the Minister of Industry Agus Gumiwang Kartasasmita projected that the manufacturing industry sector would grow 5.4 percent by 2023.

In line with this, the export value of the manufacturing industry is estimated to reach IDR 470 trillion next year.

"Meanwhile, employment is estimated to reach 19.2-20.2 million people in 2023," Agus said at the 2022 End of Year Press talks and the 2023 Industrial Outlook Seminar in Jakarta, Tuesday, December 27.

In an effort to achieve these targets, Agus said, his party plans to roll out several strategic programs, such as implementing machine restructuring programs and textile industry equipment as an effort to accelerate the performance improvement of the post-pandemic textile and textile product (TPT) industry.

"This effort is part of the implementation of the Making Indonesia 4.0 roadmap through providing more modern, efficient and energy-efficient, and more environmentally friendly investment incentives," said Agus.

Other programs, namely efforts to increase the ratio of the use of fresh milk from domestic breeders, to meet the needs of the milk processing industry raw materials, and reduce dependence on imported raw materials.

"This effort is realized through the development and strengthening of a mutually beneficial partnership program between the dairy processing industry and cooperatives or local dairy farmers," added Agus.