The Ministry Of Industry Calls Indonesia Potential To Be A Supplier Of Cosmetic Raw Materials

JAKARTA - The Ministry of Industry (Kemenperin) stated that Indonesia has the potential to become the main supplier of world cosmetic raw materials considering that currently there are 30,000 types of nutritious plants that can be processed into beauty products.

Acting Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry, Reni Yanita, said that this potential was also confirmed through the increasingly promising growth of the national cosmetic industry.

His party noted that the number of all cosmetic industry business actors increased 43.11 percent in the last three years, from 726 business actors in 2020 to 1.039 business actors in 2023.

"We are determined to further spur the growth of the cosmetic industry as well as increase the competitiveness and sustainability of the industry," said Reni as quoted by ANTARA, Wednesday, November 6.

He stated that the cosmetic industry, which is included in the 20th chemical Indonesian Business Field Standard Classification Group (KBLI), is in the expansion phase for 21 consecutive months.

Based on the achievements of the Industrial Trust Index (IKI), the performance of this industry also has a big contribution to IKI's performance in October 2024 which is in the expansion phase with a figure of 52.75 points.

"This achievement indicates that the views of industry players on Indonesia's business climate conditions over the next six months are still optimistic," he said.

By taking advantage of the existing potential, he said, Indonesia could benefit a lot from sales in the sector, because revenue from the natural cosmetic industry globally is estimated to grow with an average of 6.85 percent until 2028.

National revenue from the natural cosmetics industry is estimated to grow with an average of 5.9 percent in the same period.

In addition, he said, another opportunity that beauty business actors can take advantage of is halal cosmetics, considering that Indonesia is the majority Muslim population country, so that industry players can use a promising domestic market.

Data from the Indonesia Halal Economic Report 2021/2022 shows that Indonesia is the country with the second largest halal consumer with a market value of 4.19 billion US dollars in 2022.