Ministry of Health, Labor and Welfare to start calculating industrial confidence index from September

I need accurate and accurate figures on industry perceptions

JAKARTA (ANTARA) – The Ministry of Industry will start calculating the Industrial Confidence Index (IKI) through the National Industrial Information Systems (SIINas) in September 2022.

“We would like to have accurate and accurate figures on the perception of the industry,” Industry Minister Agus Gumiwan Kartasasmita said in Jakarta on Friday.

According to Kartasasmita, the nature of the IKI is similar to the Purchasing Managers Index (PMI) for manufacturing, published by IHS Markit to measure industry perceptions.

He pointed out that the Ministry of Industry did not know which industrial sectors should be included in the IHS Markit calculations to get figures for Indonesia’s manufacturing PMI.

“The PMIs we’ve received from Markit so far don’t tell us which industries have been investigated. We don’t know which sectors have been investigated, but we only know that 400 companies have been investigated,” said the industry minister. said.

Kartasasmita said the use of IKI allows governments to understand the perceptions of industry players, so they can relax and prepare policies to meet industry needs.

The Ministry of Industry will distribute a questionnaire to the industry that is not very different from the one submitted by IHS Markit and Bank Indonesia (BI).

According to the minister, the questionnaire will be distributed to several industries based on their License to Operate and Mobility of Industrial Activities (IOMKI) data.

“We have already obtained IOMKI data and a total of 16,000 companies are registered with IOMKI,” said the Minister of Industry.

Nevertheless, Kartasasmita is grateful that Indonesia’s manufacturing PMI rose again in July 2022 to 51.53, higher than its June 2022 figure of 50.2.

He further noted that Indonesia was one of only three countries in the world to record an increase in PMI in July 2022.

The Indonesian Manufacturing PMI was compiled by IHS Markit based on responses to a monthly survey sent to purchasing managers who are members of a panel of approximately 400 manufacturing companies.

Panels are further grouped by sector size and company workforce based on their contribution to Gross Domestic Product (GDP).

Survey responses are collected at the end of each month and indicate the direction of change compared to the previous month.

The index varies between 0 and 100, with data above 50 indicating an overall increase compared to the previous month and data below 50 indicating an overall decrease.

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