Minister of Industry Agus Gumiwang Kartasasmita advocates for collaboration between the agro industry and the chemical and pharmaceutical sectors to expedite the provision of natural raw materials for the cosmetics sector in Indonesia. Highlighting the lower per capita consumption of cosmetics in Indonesia compared to competitor nations like Thailand and Malaysia, Minister Agus sees collaboration as a solution to enhance the utilization of cosmetics made from domestic natural raw materials. He notes that only about 30% of the Rp150 trillion gross domestic product (GDP) generated by the chemical industry, including cosmetics, originates from national industrial value addition, with the remaining 70% being imported processed products.
Minister Agus underscores the significant potential of the agro industry for the development of the cosmetics sector, citing the existence of 30,000 types of plants with properties suitable for cosmetics raw materials. Projections indicate a global average growth of 6.85% in revenue from natural cosmetics sales by 2028, with national revenue expected to grow by an average of 5.9% during the same period. Through such collaboration, he anticipates that the use of natural raw materials in cosmetics could dominate the domestic market, thereby attracting the interest of multinational cosmetic companies to invest directly in Indonesia. Minister Agus urges multinational brands operating in the cosmetic industry to view Indonesia not only as a market but also as a strategic investment destination to capitalize on this potential.
