Minister Of Industry Agus: IKI Can Describe The Conditions Of The Processing Industry In Indonesia

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: Doc. ANTARA)

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the Industrial Trust Index (IKI) could describe the condition of the manufacturing industry in Indonesia.

Therefore, he invites all stakeholders, including local governments and academics, to measure the performance and optimism of the industry in their respective regions.

"I invite academics and students to use measurement indicators made by the government, because they are more in accordance with domestic conditions and more accurate because they use a larger number of samples than the national industry," said Minister of Industry Agus in a written statement, quoted Tuesday, September 5.

Agus said, since its launch in November 2022, IKI has been used to meet the needs of a more comprehensive industry performance diagnosis.

The reason is, the indicators previously used have not provided detailed industrial sector data.

"IKI has two advantages, including respondents in a much larger number when compared to other indicators, ranging from 6,000 to 8,000 companies. Second, IKI respondents represent 23 sub-sectors of the manufacturing industry so that the data is more proportional, comprehensive, and detailed," he said.

Agus said that IKI has various benefits in industrial development, namely as an indicator of reliable industrial assessment, diagnosing problems early to the industrial sub-sector, anticipating greater losses if problems occur in the industry, so that it can describe the industrial business climate so that business prospects in the next semester can be known.

Meanwhile, Spokesperson for the Ministry of Industry and Special Staff of the Minister of Law and Supervision Febri Hendri Antoni Arif revealed that IKI is a reference to find out the performance of the Indonesian manufacturing industry.

According to him, academics and students can use it as a reference and juxtapose it with GDP data from the Central Statistics Agency.

With data from 23 sub-sectors, the performance of the manufacturing industry can be seen in more detail.

"Previously, investors monitored the performance of the manufacturing sector using other indicators, such as the Purchasing Manager's Index (PMI) manufacturing. The Ministry of Industry built IKI to get more detailed indicators," he said.

IKI itself consists of three compiler variables, namely new orders, production, and product supplies.

Febri explained, IKI can be a reference related to the condition of the industrial sector, including regarding industrial human resources.

"For example, if one of the sub-sectors is expanding or contracting, this is related to increasing labor absorption," he said.