Jakarta – The business prospects of the cosmetics industry in Indonesia are getting brighter, with the Ministry of industry continuing to encourage the competitiveness of local cosmetic products.

This kind of effort is not only to dominate the domestic market, but also to strengthen Indonesia‘s position as a competitive global cosmetics manufacturer.

“We are committed to driving the growth of the cosmetics industry and improving its competitiveness and sustainability,” said Plt. Director General of Chemical, Pharmaceutical and Textile Industry (IKFT), Reni Yanita, in the Bakohumas Communication Forum themed “Local to Global: Making the Indonesian Cosmetics Industry a Major Player,” in Jakarta, Tuesday (5/11).

The Cosmetic Industry Is Getting Prettier, The Potential Of Natural Raw Materials Is Glimpsed

The growth of the beauty industry, especially cosmetics, is indeed increasingly promising. The number of cosmetic businesses experienced a surge of 43.11 percent in the last three years. From 726 business actors in 2020 to 1,039 in 2023.

The cosmetics industry also contributed 6.8 percent to the GDP of the non-oil and gas processing industry sector in 2023. The cosmetics industry is in second place after the food industry with a contribution of 17.2 percent.

Reni added that the cosmetics industry, which is included in the kbli 20 chemical category, is now in an expansion phase for 21 consecutive months, with the Industrial Confidence Index (IKI) in October 2024 recording a figure of 52.75.

” This shows that the views of industry players on Indonesia’s business climate over the next six months are still positive, ” he said.

The trend of using natural ingredients such as essential oils, herbs, and seaweed continues to encourage the local cosmetics industry to develop high-quality products.

According to Statista, global revenue from natural cosmetics will grow by an average of 6.85% by 2028. In Indonesia alone is projected to grow 5.9 percent per year until 2028.

Indonesia, which has more than 30,000 types of nutritious plants, has only utilized about 350 types for the cosmetics industry. “This opportunity must be utilized by local industries to create uniqueness and competitiveness,” Reni added.

Another opportunity that can be utilized is the production of halal cosmetics. “With the large number of muslim population in Indonesia and the mandatory introduction of halal products, the national cosmetics industry must increase the production and variety of halal cosmetics,” said Reni.

Data from the Indonesia Halal Economic Report 2021/2022 shows Indonesia to be the second largest halal consumer with a market value of USD4.19 billion in 2022.

Mustika Ratu focuses on natural ingredients

As a major player in the local cosmetics industry, PT Mustika Ratu Tbk (MRAT) not only focuses on commercial benefits, but also upholds the values of local wisdom and sustainability.

President Director of PT Mustika Ratu Tbk (MRAT), Bingar Egidius Situmorang, stated that Mustika Ratu has transformed into an icon of cosmetics based on natural ingredients, combining cultural heritage with modern innovation. “Our licensing and standards are complete, so Mustika Ratu products are safe for consumers,” Egi said.

Operating since 1978, PT Mustika Ratu Tbk has met international production standards, with GMP, CPKB, CPOTB, ISO, and halal certifications.

In 2023, the company recorded an increase in net sales of 5.41 percent and an increase in gross profit of 25.86 percent compared to the previous year. This was driven by a 7.13 percent growth in self-care products.

With an aggressive expansion strategy, Mustika Ratu added export destination countries from 40 in 2023 to 43 countries this yearF

Thanks to this effort, Mustika Ratu won the “Best Export Expansion” award at the Indonesia Halal Award (IHYA) 2023 from the Ministry of Industry. “We thank the Ministry of industry for this appreciation,” said Egi.***