The Ministry of Industry (Kemenperin) reported that Indonesia's Industrial Confidence Index (IKI) increased by 0.08 points to reach 52.48 in September 2024. According to Kemenperin spokesperson Febri Hendri Antoni Arif, this figure indicates that Indonesia’s manufacturing sector remains in an expansion phase, with the IKI staying above the critical 50-point mark. Compared to August 2024, when the IKI was at 52.40, the September increase reflects a near-stagnant change. Of the 23 manufacturing subsectors analyzed, 21 experienced expansion, contributing 97.3% to the non-oil and gas GDP in Q2 2024. The two subsectors with the highest IKI were non-metallic mineral goods and electrical equipment.
Febri also highlighted the performance of the non-metallic mineral sector, particularly driven by the growth in the cement industry, which supports Indonesia's infrastructure, construction, and real estate projects. Meanwhile, the electrical equipment sector showed strong demand from construction and real estate, contributing to its high IKI. On the other hand, subsectors such as computers, electronics, and optics contracted, largely due to increased imports, both legal and illegal. Despite this, the IKI for production expanded by 4.58 points to 51.12 in September 2024, and business activity optimism remained high at 77.4%, with 31% of businesses reporting increased activity compared to August 2024.
