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JAKARTA - The Ministry of Industry (Kemenperin) is optimistic that the manufacturing industry this year will continue to expand.

Based on the release of the Industrial Trust Index (IKI) in December 2022, 60.5 percent of business actors expressed optimism that economic conditions in 2023 would improve and 24.3 percent of business actors stated that the national industry would be stable.

Acting Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry, Ignatius Warsito, said the high number of optimism was 60.5 percent, up from the previous month's 58.1 percent.

"In addition, the optimism that business actors are also supported by regulatory policies that have been issued by the government, making it easier for industry players to accelerate industrial utilization," said Ignatius Warsito, as quoted on Monday, January 2.

According to Warsito, the Ministry of Industry has even visited a number of business actors directly to ensure industrial performance will improve, especially regarding increased production, since two months ago.

Previously, Spokesperson for the Ministry of Industry Febri Hendri Antoni said the national manufacturing industry would continue to show expansionary activity amid the slowdown in the global economy.

This is reflected in the results of the Industrial Trust Index (IKI) which touched the level of 50.90 in December 2022.

This figure increased by 0.01 compared to November 2022 which touched the level of 50.89.

"This figure shows that the country's manufacturing industry is still in an expansionary phase," said Febri, Friday, December 30.

He also said that of the 23 sub-sector variables of the manufacturing industry, there were 11 expansion sub-sectors, while 12 sub-sectors experienced contractions.

The share of GDP in the third quarter of subsequences whose expansion increased from 71.3 percent to 74.9 percent.

The main reason is because the sub-sector of the chemical and goods industry from chemicals that share with the GDP of the non-oil and gas processing industry by 7.2 percent increases its value of IKI from contraction to expansion.

Febri added that all IKI formation variable indexes in December 2022 experienced expansion.

The increase in IKI value in December 2022 came from a change in IKI's product supply, which in November contracted (47.23), to expansion (54.27) in December.

According to Febri, domestic orders are the dominant factor affecting the new order variable index.

"This is related to the value of the production variable index. Meanwhile, orders are the dominant factors in the production variable index and product inventory," he concluded.


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