Jakarta (ANTARA) - Indonesia’s Industry Ministry said the domestic cosmetics sector has strong growth prospects, supported by rising consumer demand and a large domestic market, while calling for stronger innovation and industrial partnerships.

Industry Minister Agus Gumiwang Kartasasmita said on Tuesday that expanding demand had created significant opportunities for the cosmetics sector and encouraged more businesses to enter the industry.

He said the increase in industry players should be accompanied by higher product quality, stronger innovation and a more resilient industrial ecosystem.

“Amid the growing number of businesses, we hope the cosmetics industry can not only meet domestic demand but also increase exports and contribute more to national economic growth,” Kartasasmita said.

Data from Indonesia’s Food and Drug Monitoring Agency showed the number of domestic cosmetics companies rose from 1,292 in 2024 to more than 1,500 by the end of 2025, with about 90 percent categorized as small and medium enterprises.

The ministry said cosmetics exports increased to US$473.8 million in 2025 from US$417 million a year earlier.

Kartasasmita said small and medium enterprises still faced challenges despite the industry’s positive growth momentum.

He said stronger cooperation among government agencies, industry associations and businesses was needed to strengthen the national cosmetics industry ecosystem.

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The ministry’s Directorate General of Small, Medium and Miscellaneous Industries, together with the Indonesian Cosmetics Companies Association, is working to strengthen supply chains and expand the use of domestic raw materials.

Kartasasmita said partnerships would help cosmetics SMEs gain easier access to raw materials, widen marketing and distribution channels, and integrate into larger industrial supply chains.

Director General Reni Yanita said cosmetics SME development requires cooperation involving regional governments, universities, retailers, marketplaces, BPOM and major corporations.

As part of the initiative, the ministry held a “Local Supply Chain for Cosmetic Industry” business matchmaking pre-event at JIExpo Kemayoran in Jakarta on May 6-8, 2026.

Yanita said the event served as a preliminary step ahead of the main business matchmaking program scheduled for September.

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