The cosmetic industry in Indonesia is thriving, driven by innovative products catering to the increasing awareness of appearance care among consumers. Local cosmetic brands are continuously motivated to produce cutting-edge products aligned with the latest technologies and trends to meet current societal needs.. The country's vast market and abundant natural resources, especially herbal plants with a longstanding tradition of use in health and cosmetic products, contribute to this potential. Export values for the pharmaceutical, chemical, and traditional medicine industries, including cosmetics, reached USD 601.15 million from January to October 2023. This marks an increase compared to the same period in 2022. Furthermore, the industries also contributed 3.83% to Indonesia's Gross Domestic Product (GDP) in the third quarter of 2023.
The Ministry of Industry's Directorate General of Small, Medium, and Miscellaneous Industry (Ditjen IKMA) actively supports and develops Small and Medium Enterprises (SMEs) in the cosmetic sector. Initiatives include mentoring in the Good Manufacturing Practice for Cosmetics, product registration facilitation, machinery and equipment facilitation, promotion, human resource competency enhancement, and the implementation of Industry 4.0 practices. Various programs, such as strengthening cosmetic product branding, machinery and equipment restructuring, and mentoring in the Good Traditional Medicine Manufacturing Practices, aim to establish a comprehensive cosmetic industry ecosystem. Since 2019, the Ministry of Industry has been organizing Cosmetic Day annually, promoting the growth and development of the national cosmetic industry, particularly those utilizing local raw materials. Cosmetic Day 2023 aimed to provide a platform for local cosmetic industry players to expand their market reach, build networks with industry peers and relevant stakeholders, and cultivate public appreciation for national cosmetic products. The event featured business meetings, beauty and business talk shows, beauty workshops, and a cosmetic product exhibition showcasing products from 20 SMEs supported by the Ministry of Industry. Wide range of topics was covered in talk shows, including discussions on cosmetic legality, cosmetic material innovation, the Mandatory Halal Policy in 2026, branding tips for cosmetic businesses, and entrepreneurship in the cosmetic industry.
