The Indonesian Cosmetics Market Is Expansive, The Ministry Of Industry Records A 48 Percent Increase In Revenue During 2021-2024

Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry Reni Yanita. (Photo: Doc. Ministry of Industry)

JAKARTA - The Ministry of Industry noted that the cosmetic market in Indonesia is in an expansive condition.

This can be seen from the total data on the income of the cosmetic industry, which in the period 2021-2024 experienced a total increase of 48 percent.

"The increase is from 1.31 billion US dollars or around Rp. 21.45 trillion in 2021 to 1.94 billion US dollars or around Rp. 31.77 trillion in 2024 (Statista.com data)," said Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry Reni Yanita in a written statement, Friday, August 2.

Reni said that the growth in the cosmetics industry sector is expected to continue until 2028.

He said, within 2024-2028, the cosmetic industry in Indonesia is expected to experience an average growth of 5.35 percent per year.

"This is a very promising opportunity and must be utilized optimally by cosmetic industry players, including IKM players," he said.

Reni added that expansionary conditions were also seen in the addition of cosmetic business actors.

Based on data from the Food and Drug Supervisory Agency (BPOM), cosmetic business actors who are members of the Indonesian Cosmetics Company Association (Perkosmi) increased from 819 business actors in 2021 to 1,039 business actors at the end of 2023.

Based on Perkosmi data, said Reni, as many as 89 percent of cosmetic business actors in Indonesia are IKM actors. "So, cosmetic IKM has a crucial role in providing job opportunities," he said.

From this potential, Reni revealed, the involvement of IKM in the cosmetic industry in addition to supporting economic growth will also have a significant social impact.

"Support and development of IKM can be an effective strategy in creating job opportunities, reducing poverty and encouraging innovation in the cosmetic industry," he said.