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Business confidence growing except in textiles, ministry says
The Industry Ministry’s IKI shows that manufacturing industries posted growth in June, all except for the textile sector, which fell below the threshold value of 50 amid its prolonged battle to gain a foothold against an influx of foreign imports.
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Shoppers crowd Tanah Abang textile market in Jakarta on April 3, 2024, during the peak holiday season of Idul Fitri. (AFP/Adek Berry)
T
he Industry Ministry said the majority of the country’s manufacturing industries except the textile sector had continued to expand according to its business confidence index (IKI) for June.
IKI data for this month show that most manufacturing industries maintained a level above the threshold value of 50, with only the textile industry dipping below that value.
Overall confidence for manufacturing hovers at 52.5, the same value recorded in May.
“Out of the 23 subsectors, one is weakening and that’s textile, because its [score] is below 50,” ministry spokesperson Febri Hendri Antoni Arief told a press conference on Thursday, as quoted by Antara.
Read also: Textile industry demands more supportive regulations
The IKI is a survey that measures confidence in the industry sector as regards the economy and expectations for the next six months. The Industry Ministry introduced the index in November 2022, using data from surveys involving between 6,000 and 8,000 local producers.
It is conceptually similar to the manufacturing purchasing managers’ index (PMI) of S&P Global, which surveys selected purchasing executives at around 400 Indonesian manufacturing companies.
