Indonesia's cosmetics and traditional medicine industry is showing rapid growth. The Ministry of Industry noted that cosmetic and traditional medicine commodities showed positive performance through export achievements and business unit growth. During January - November 2024, the export performance of the cosmetic product industry reached USD 382.4 million, while the export performance of the traditional medicine industry was USD 6.3 million. Meanwhile, based on data from the Food and Drug Supervisory Agency (BPOM), more than 85% of cosmetic and traditional medicine industry players are in the MSME sector.
The Director General of Small, Medium and Miscellaneous Industries (IKMA) of the Ministry of Industry, Reni Yanita, emphasized that the contribution of MSMEs to the performance of the sector deserves appreciation. In her statement in Jakarta on Sunday, March 23th, 2025, Reni Yanita said that the potential of the local cosmetics and traditional medicine industry has characteristics that come from the wealth and diversity of natural resources. "The shift in global consumer trends towards natural and herbal-based products also supports the development of the cosmetics and traditional medicine industry," he said. The use of medicinal plants and natural ingredients for traditional medicine has also become part of Indonesia's cultural heritage. The Ministry of Industry through IKMA continues to encourage the development of the competitiveness of domestic cosmetics and traditional medicine SMEs through various facilitation and coaching activities so that they are able to dominate the local market and enter the global market. "Consumer awareness of the importance of safe, environmentally friendly materials that have broader health benefits is a key factor that can differentiate one product from another. Therefore, industry players must be ready to develop innovative products that have strong selling value," added Reni Yanita.
