The Indonesian Ministry of Industry (Kemenperin) sees significant potential for Indonesia to become a leading global supplier of cosmetic raw materials, with over 30,000 plant species offering beauty-enhancing properties. Acting Director-General of the Chemical, Pharmaceutical, and Textile Industries (IKFT) Reni Yanita noted in Jakarta on Tuesday that this potential aligns with the promising growth of the national cosmetics industry. Kemenperin reports a 43.11% increase in cosmetic business operators over the past three years, from 726 in 2020 to 1,039 in 2023. “We aim to further drive growth in the cosmetics industry while enhancing competitiveness and sustainability,” she said. The cosmetics industry, classified under KBLI 20 (Chemicals), has been in an expansion phase for 21 consecutive months, with its Industrial Confidence Index (IKI) standing at 52.75 points as of October 2024, reflecting continued optimism in the business climate for the coming six months.
Indonesia’s position is bolstered by the global trend towards natural cosmetics, projected to grow at an average rate of 6.85% until 2028, while Indonesia’s national natural cosmetics revenue is expected to grow at 5.9% during the same period. Yanita highlighted additional opportunities within halal cosmetics, noting that Indonesia’s large Muslim population creates a robust domestic market. The Indonesia Halal Economic Report 2021/2022 shows that Indonesia ranked as the world’s second-largest halal consumer, with a market value of USD 4.19 billion in 2022. This strong domestic demand for halal cosmetics presents a lucrative market for local businesses, enhancing Indonesia’s role in the global halal economy.
