"Alhamdulillah (Praise be to God), there has been an expansion to drive the Industry Index (IKI) value through the chemical and chemical goods industry," he added at the “2022 December IKI” press conference here on Friday.
Moreover, there has been additional demand for chemical products, which, in the end, has contributed positively to the IKI value, he said.
This expansion is noteworthy given that the chemical industry sector, whether upstream, downstream, pharmacy, or non-metal mining material, experienced a contraction in November.
In addition, the ministry recorded that the pharmacy and chemical drug sub-sector experienced a contraction due to acute kidney failure cases in children, which led to the withdrawal of several pharmaceutical industry products.
This led to stagnation in production for the domestic market.
"From 124 liquid drug industry companies, only 22 companies still remain," Warsito informed.
Amid improving conditions, there has been a production improvement in December, both in terms of demand and supply, he highlighted.
He said he expects the IKTF sector to encourage optimism toward domestic business conditions.
During the event, Industry Ministry spokesperson Febri Hendri Antoni Arif informed that a majority of businesspersons are taking an optimistic view of business conditions for the next six months compared to November.
This has been reflected in one of the indicators of the Industry Trust Index (IKI) on the view of business conditions in the next 6 months or the January–June 2023 period.
“A majority or 60.5 percent of businessmen declared their optimism toward industrial business conditions for the next 6 months. This figure rose from the previous month with 58.1 percent," he noted.
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Translator: Sella P G, Fadhli Ruhman
Editor: Rahmad Nasution
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