Observer suggests streamlining cosmetics raw material industry

Observer suggests streamlining cosmetics raw material industry

The launch of local cosmetic brand 'Y.O.U' in Jakarta, Thursday (15/11/2018). (ANTARA News/ Maria Cicilia Galuh/ Aria Cindyara)

Jakarta (ANTARA) - Industry observer from the Institute for Development of Economics and Finance (INDEF) Ahmad Heri Firdaus called to bring about improvements in the structure of the national cosmetics raw material industry to reduce the imports of foreign beauty products.

"The availability of, especially raw materials, for the cosmetics industry in the country is still comparatively weak, in terms of its structure," he noted in Jakarta, Wednesday.

He further pointed to the need to further develop basic industries, so they can sustain the cosmetics industry.

The availability of raw materials for manufacturing cosmetic products has been sufficient, though Firdaus believes that the raw materials industry should be further promoted to support a vast variety of local cosmetics.

He believed that the high imports of cosmetics in Indonesia mirrors the steady rise in the demand from members of the middle class that continues to grow. Moreover, there has been a shift in the behavior of middle-class consumers, from secondary to tertiary requirements, including cosmetics.

Furthermore, foreign cosmetics can also penetrate multiple segments, from the middle- to low- to upper-class consumers, with a plethora of choices in varying prices on offer.

"The demand for cosmetics among consumers indicates an opportunity to strengthen the local cosmetics industry," he noted.

It was earlier revealed that the imports of cosmetic products continued to remain rather high and that it had posed a challenge that called for a prompt solution.

Industry Minister Airlangga Hartarto stated that the imports of cosmetics were valued at US$850.16 million in 2018, thereby indicating an increase as compared to $631.66 million in 2017.

The government has continued to adopt measures to boost competitiveness of the local industry, one of which is by issuing strategic policies that can strengthen the structure of the national industry.

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