In April 2024, the optimism level among manufacturing industries regarding the economic conditions, measured by the Industrial Confidence Index (IKI), reached 52.30, indicating an expansion phase, albeit slowing down by 0.75 points compared to March 2024's 53.05. However, there was an increase of 0.92 points compared to April 2023's IKI of 51.38. According to Febri Hendri Antoni Arif, the spokesperson for the Ministry of Industry, the slowdown in IKI for April 2024 was attributed to seasonal factors, particularly the long Eid al-Fitr holiday, resulting in fewer orders received by the industries compared to March 2024. Among the four subsectors - electronics, basic metals, transportation equipment, and furniture - that experienced contraction in April 2024, they collectively contributed 12.3% to the Non-Oil and Gas Manufacturing Gross Domestic Product (GDP). Meanwhile, the other 19 subsectors continued to expand during the same period, contributing 87.7% to the GDP.
Analyzing the IKI's constituent variables, the decline in IKI was mainly due to weakened new orders and stock of products, although the production variable's IKI value increased. Overall, the industry's confidence in April 2024 was still considered positive. Febri also noted that the optimism among business players regarding the business conditions for the next six months increased to 72.7%, the highest level in the last 18 months. Meanwhile, the pessimism among business players about the business conditions for the next six months decreased to 6.3%, marking the lowest level since the IKI was released.
