Industry confidence index May 2024 increases to 52.50, decline in the tobacco sector

JAKARTA – The Ministry of Industry recorded that the Industrial Confidence Index (IKI) in May 2024 was 52.50.

Industry Ministry spokesman Febri Hendri Antoni Arif said the May 2024 IKI increased by 0.20 points compared to April 2024, which was 52.30.

“The IKI in May 2024 reached 52.50, an increase of 0.20 points. So it has increased slightly,” Febri stated in the May 2024 issue of IKI, which was monitored online on Thursday, May 30.

Febri reported that in May 2024, the IKI recorded an increase of 1.60 points compared to the IKI in May last year. He said that out of the 23 sub-sectors under study, 22 sub-sectors experienced expansion and only 1 sub-sector contracted, namely the tobacco processing industry.

“The share of 22 sub-sectors in GDP is 95.8 percent. This means that all sub-sectors of the oil and gas processing industry are active,” he said.

“But one sub-sector that is shrinking, which is its share of GDP, is 4.2 percent of the tobacco processing industry,” he continued.

He explained that the contraction of the tobacco processing industry only occurred in May this year, since IKI was launched in November 2022. The reason is the reduction of components on the production side due to the trade of illicit cigarettes.

“We report that the contraction of the tobacco processing industry occurred only in the IKI calculation in May 2024. This is due to the decline in components on the production side. “We are getting information from the tobacco industry (IHT) that is restricting tobacco production due to the circulation of illegal cigarettes in the market, especially from outside Indonesia,” Febri said.

Therefore, the Ministry of Industry requests the suppression of the trade in illegal cigarettes as it affects the production of the tobacco processing industry. On the same occasion, he talked about other subsectors that experienced expansion in May, but previously experienced declines and suffered.

One of them is the textile industry, which has been developing since April 2024.

This means that the industry has launched large production and orders, both from the domestic market and from export.

“We, representatives of the Ministry of Industry, together with textile associations and other TPT associations, will continue to monitor finished clothing products or textiles leaving the ports, including yesterday’s container construction. We will monitor the market flow and its impact on the industry’s textile and ready-made garment production,” Febri said.

Regarding IKI in May 2024, Febri said, looking at the variables that make up IKI, there is an increase in the value of IKI resulting from the increasing value of the new ordinal variable IKI, which is 1.23 points.

Thus, the value of new IKI orders increased to PLN 53.16.

By 0.57 points the value of inventory variables for IKI products also increased to 54.59.

Unlike the other IKI value variables, the production variables actually saw a decline in expansion of 1.75 points. to 50.01.

The optimistic thing is that in May 2024, business entities will improve their business conditions in the next 6 months to 73.5%. compared to 72.7 percent in April 2024

This value is the highest optimistic value since the release of IKI.

In fact, all respondents involved in the paper and paper industry, machine/aluminum repair and installation, responded optimistically.

Moreover, as much as 20.8 percent business entities stated that their business conditions will be stable for the next 6 months. This number decreased compared to the previous month’s figure.

The percentage of pessimistic views of business actors regarding the conditions of doing business in the next 6 months is 5.7%, which means a decrease compared to April 2024 by 6.3%.

This value is the lowest pessimistic value since the release of IKI.

Tag: index kepercayaan industri kemenperin industri tembakau