The Ministry of Industry (Kemenperin) is optimistic that the chemical and textile industries will be able to thrive during Ramadan and Idul Fitri 1444 H or Eid 2023. The reason is that with the post-pandemic economic recovery, domestic demand tends to increase. Acting Director General of the Pharmaceutical and Textile Chemical Industry (IKFT) of the Ministry of Industry Ignasius Warsito hopes that increased domestic consumption will be able to boost the productivity of the manufacturing industry thereby increasing the Industrial Confidence Index (IKI).
"We know that this is the month of Ramadan and there will be Eid in April. We hope that the position of the IKFT sector will be, because these are important goods and basic goods such as clothing, footwear and also plastic goods and their derivatives, this is very much needed during Ramadan and Eid," he said in press conference in Jakarta, Friday.
The Ministry of Industry released the Industrial Confidence Index (IKI) as of March 2023 of 51.87, down 0.45 points compared to the achievement in February 2023 of 52.32.
Although slower compared to February 2023, IKI March 2023 is still in the expansion phase. The decline in IKI values was due to the average decrease in IKI values in nine sub-sectors of 2.97, which was greater than the average increase in IKI values in 14 sub-sectors of 1.97.
The share of the IKI sub-sector which has expanded to the Non-Oil and Gas Processing Industry GDP in 2022 is 80.4 percent, supported by expansion in sub-sectors that have a sizable contribution such as the Food Industry; Industry of Chemicals and Products made of Chemicals; and the Motor Vehicle, Trailer and Semi-Trailer Industry.
All variable indices forming the IKI in March 2023 were also recorded to have expanded. Domestic Orders is the dominant factor affecting the New Orders variable index. Orders are the dominant factor for the variable index of Production and Product Inventory.
In detail, Warsito revealed that the IKFT sub-sector as a whole in the last three months was still at the expansion level with an index achievement between 51.5 to 52.3.
