The Chamber of Commerce and Industry (Kadin) of East Java has affirmed its commitment to aiding cosmetic businesses in expanding their export networks, particularly to potential markets in Europe, South Africa, and India. Adik Dwi Putranto, the Chairman of Kadin East Java, emphasized the significance of the cosmetic industry, considering it one of the nation's top three priority sectors due to its vast potential in both domestic and export markets, aligned with the evolving lifestyles of the populace. Highlighting the increasing demand for various cosmetic products for skincare and facial care, Adik pointed out the business opportunities that arise from this trend. He noted the rise in individuals trying their luck in the cosmetic industry, whether as resellers, distributors, or even establishing their own cosmetic brands without the need for manufacturing facilities. Adik highlighted the substantial potential of the cosmetic industry in Indonesia, including East Java, attributing it to abundant raw materials and a massive domestic market. Indonesia's population of approximately 270 million is a substantial and yet to be fully tapped market. Moreover, the international market offers broad opportunities.
Estimating the per-person cosmetic expenditure in Indonesia to range from IDR 500,000 to IDR 1 million per month for the middle to lower-middle segments, and potentially reaching tens of millions for the upper-middle class, Adik underscored the extraordinary size of the market. However, he emphasized the need to adhere to regulations when entering the cosmetic business, including mandatory possession of tax identification, business identification, pharmaceutical technical personnel practice permits, Good Manufacturing Practice (GMP) certification, and distribution permits from the National Agency of Drug and Food Control (BPOM). Referring to the Indonesia Halal Economic Report, Adik pointed out that the national halal cosmetic industry had a market value of USD 4.19 billion in 2022, projected to grow by 8% annually. BPOM reported a growth in the number of cosmetic entrepreneurs from 819 in 2021 to 913 in 2022, marking a 20.6% increase. The cosmetic industry also provided employment for 59,886 individuals. In conclusion, Kadin East Java's commitment to supporting cosmetic businesses in expanding their export networks reflects the recognition of the sector's economic importance and its potential for substantial growth in both domestic and international markets.
