Indonesia - Industrial Production





Indonesia: Industrial Production

Mnemonic IP.IIDN
Unit 2010=100, NSA
Adjustments Not Seasonally Adjusted
Monthly 0.49 %
Data Sep 2018 142.56
Aug 2018 143.26

Series Information

Source Bank Indonesia
Release Industrial Production
Frequency Monthly
Start Date 12/31/1996
End Date 9/30/2018

Indonesia: Business

Reference Last Previous Units Frequency
Business Confidence 2018 Q4 8.26 17.73 weighted net balance Index,NSA Quarterly
Change in Inventories 2018 Q3 77,733 138,853 Bil. IDR, NSA Quarterly
Industrial Production Sep 2018 142.56 143.26 2010=100, NSA Monthly
Real Change in Inventories 2018 Q3 45,518 81,439 Bil. 2010 IDR, NSA Quarterly

Release Information

A fixed-weight measure of physical output of the nation's factories, mines and utilities. Monthly percent changes in the index reflect the rate of change in output. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector Concepts and Definitions Manufacturing Establishment is defined as a production unit engaged in economic activity, producing goods or services, located in a building or in a certain location, keeping business records concerning the production and cost structure, and having a person or more who bear the responsibility or the risk of that activity. Manufacturing Industries are classified into four size categories based on the number of persons engaged without considering the use of machine powers as well as the value of capital owned by that particular industry. The four categories are: Large : 100 and more employees Medium : 20 - 99 employees Small : 5 - 19 employees Cottage : 1 - 4 employees Industrial classification: Industrial classification is based on the International Standard Industrial Classification for all economic activities (ISIC, Rev.3. 1990).

Production Index of Large and Medium Manufacturing (LMM) I. Source of data Monthly Survey of Large and Medium Manufacturing II. Sampling Since 2002 the industrial production indices have been using the 2000 sampling frame. In accordance with the sample design, the indices can be published maximally only 2 digits ISIC revised 3. The selection of the sample was made in three steps. In the first step, establishments selected with certainty were establishment's with output value of Rp. 750.09 billion or more. In the second step, establishments selected with certainty were establishments in the top 1% of output per worker were added. The last step, others are selected with Probability Proportional to Size (PPS). The sample size of Monthly Survey of LMM is about 600 establishments taken from the 2000 Annual Industry Survey, which represent about 56 percent of total output of large and medium manufacturing. III. Methodology Methodology of the sample selection is still the same as the old one, i.e. Cut off Point and PPS. The methodology of calculation for the monthly production indices has been using “Divisia method”. The calculation is based on the estimation of inter month commodity growth. Quarterly production indices are calculated by averaging the three monthly indices on the concerned quarter. IV. The reason of changes The changes of 1996 sampling frame was done by considering that the sampling frame was not representative anymore. More over with the new sampling frame, it is hoped that “the panel bias” occurred could be reduced. V. Formula Computation of the monthly quantity production indices follow these steps: 5.1. Establishment ratio. Where: Rij is the ratio of establishment j in ISIC i of the 2nd month to the 1st month. Qijk2 is the production of commodity k for establishment j in ISIC i at the 2nd month. Qijk1 is the production of commodity k for establishment j in ISIC i at the 1st month. Vijk is the production value of commodity k for establishment j in ISIC i during the two-month period. 5.2. ISIC index. Where: I2t is 2-digit production index in the t-th month. I2(t-1) is 2-digit production index in the (t-1)th month. Wij adj is the adjusted sampling weight of establishment j in the 2-digit ISICi Vij is the production value of establishment j in ISIC i during the two-month period. 5.3. Total index. Where: It is the index of total production in the t-th month. I(t-1) is the index of total production in the (t-1)th month. Wi2 is the total of sampling weight for all establishments in 2-digit ISIC i during the two-month period. Vi2 is the total of production value for all establishments in 2-digit ISIC i during the two-month period.

When first published the data are “extremely preliminary figures”  and are revised twice before the final figures are published.