Despite the landmark passage of the 1938 Federal Food, Drug, and Cosmetic Act...
Industry growth enhances Indonesia's position in the global cosmetics industry.
2026-05-12
Reni Yanita, Director of the Department of Micro, Small and Medium Enterprises and Diversified Industries at the Indonesian Ministry of Trade, spoke at the 16th Indonesian Cosmetic Ingredients (ICI) Conference in Jakarta on Wednesday (May 6, 2026).
Jakarta (Antara News Agency) – Indonesia's Ministry of Industry stated that the surge in domestic cosmetics industry participants reflects Indonesia's competitiveness in the global cosmetics market and its contribution to economic growth.
The Indonesian Food and Drug Administration (BPOM) has registered 1,684 cosmetics industry participants to date, most of which are small and medium-sized enterprises (SMEs).
"The Indonesian cosmetics industry is showing positive growth, with nearly 85% of participants being SMEs," Reni Yanita, Director of the Department of Micro, Small and Medium Enterprises and Diversified Industries at the Indonesian Ministry of Industry, said in a written statement on Friday.
She pointed out that, according to forecasts from several research institutions, including Statista, Indonesia's cosmetics market is expected to exceed US$10 billion this year, with an average annual growth rate of over 5.5% in the next five years.
However, efforts to drive growth in the sector face significant challenges, as Indonesia relies on imports for nearly 80% of its raw materials.
“We need to work together to develop domestically produced raw materials by strengthening research, commercializing research results, and collaborating among governments, regulatory agencies, industry associations, and businesses,” Yanita said.
At the same time, Sopal Haromoan Silette, Director of the Downstream Chemicals and Pharmaceuticals Division of the Ministry, emphasized the need to develop import alternatives to make Indonesia's cosmetics industry more independent.
“Indonesia boasts over 30,000 medicinal plants and natural resources, with rich biodiversity and enormous potential for development into cosmetic ingredients,” Silette said.
Sankoyo Antarixo, president of the Indonesian Cosmetics Association (Perkosmi), stated on behalf of the association that the Indonesian cosmetics industry must transform, based on innovation, technology, safety, and sustainability.
He pointed out that consumers are now paying more attention to cosmetics, and they want cosmetics to be harmless and produced in a sustainable way.
“As technology, safety, and sustainability become key factors in product development, the entire industry is moving toward higher standards. Cross-departmental collaboration is crucial to accelerating this transformation,” Antarixo said.