The Indonesian Food and Drug Authority (BPOM) has recorded 1,684 cosmetic industry actors so far, with most of them being small to medium industries, as noted by the ministry.
"Indonesia's cosmetic industry has shown positive growth, with almost 85 percent of its players being small to medium industries," Reni Yanita, director general for small, medium, and diverse industries at the ministry, stated in a written statement on Friday.
She noted that according to projections from survey agencies, including Statista, Indonesia's cosmetic market value this year is expected to surpass US$10 billion, with average growth above 5.5 percent for the next five years.
However, efforts to strengthen the growth face a significant challenge as nearly 80 percent of its raw materials are imported.
"We need joint efforts to develop domestic materials by strengthening research, commercialization of research outcomes, and collaboration between the government, the regulators, associations, and industry actors," Yanita said.
Meanwhile, Sopar Halomoan Sirait, director for downstream chemical and pharmacy at the ministry, highlighted the need to develop import substitutes to make Indonesia's cosmetic industry more independent and self-reliant.
"Indonesia's biodiversity, with over 30 thousand medicinal plant species and natural resources, has great potential to be developed as cosmetic ingredients," Sirait stated.
Representing the Indonesian Cosmetics Association (Perkosmi), Chairperson Sancoyo Antarikso stated that the nation's cosmetic industry must transform itself by making innovation, technology, safety, and sustainability its foundation.
He said that consumers are now more conscious of their cosmetics as they expect them to be harmless and produced sustainably.
"The industry is moving toward a higher standard when technology, safety, and sustainability become the main factor in product development. Cross-sectoral collaboration is key to expedite the transformation," Antarikso remarked.
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Translator: Arnidhya Nur Zhafira, Nabil Ihsan
Editor: Azis Kurmala
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