Heaptalk, Jakarta — Coinciding with the month of Ramadan in the Islamic calendar, the Industrial Confidence Index (Indeks Kepercayaan Industri–IKI) exhibits a significant increase in March 2024 reaching 53.05, an increment of 0.49 points compared to February 2024, namely 52.56.
The growth of the IKI value in March 2024 is influenced by product inventory and order variables, which increased by 1.35 points or experienced a high expansion of 55.63 and is the highest since the IKI was released in November 2022.
This condition, said the Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif in Jakarta, on Monday (04/01), shows that processing industry products are optimally absorbed in the market, primarily the domestic market. The Ramadan moment is one of the drivers for optimal absorption of industrial products, considering that since the beginning of 2024, instability in global economic conditions has put pressure on orders and production for the Indonesian processing industry.
In addition, the IKI value of the new orders variable also experienced an expansion of 1.11 points to 54.25. The stable condition of the United States and China as the main partners is thought to have encouraged an increase in orders. In contrast to the IKI value, the other two variables, namely the production variable, experienced a decline of 1.12 points or contracted at the level of 49.33, which is the first time this has happened since the IKI was released. This is thought to have occurred as a result of the manufacturer’s decision to use up product inventories that had accumulated since the end of 2023.
By subsector, the addition of the IKI value in March was influenced by an increase in the IKI value in 15 processing industry subsectors, as well as four subsectors that experienced a change in level to expansion. These four subsectors include the computer, electronic goods and optics subsectors; electrical equipment industry; other transportation equipment industry; and other processing industries.
“Thus, the number of subsectors experiencing expansion will become 21 subsectors with a contribution to GDP in 2023 of 96.20%. The subsectors experiencing contraction are the textile industry and wood, wooden goods, and cork industry,” explained Febri.
In more detail, the largest IKI value (largest expansion) was still experienced by the beverage industry although the IKI value decreased by 0.59 points due to a drop in the production IKI value of 3.49 points, followed by the food industry which experienced an increase in the IKI value of 0.94 points. beyond the pharmaceutical, chemical, and traditional medicine industries.
“Meanwhile, the largest increase in the IKI value was experienced by several subsectors, including other processing industries of 5.91 points due to an increase in foreign and domestic orders; other transportation equipment industry subsectors of 4.37 points due to an increase in domestic orders, as well as the computer industry subsector, electronic and optical goods amounted to 4.02 points supported by increased production and increased product absorption into foreign and domestic markets,” he concluded.
