Indonesia Boosts Cosmetics, Wellness Industry for Global Competitiveness

RRI.CO.ID, Jakarta - Indoneis'as Minister of Industry, Agus Gumiwang Kartasasmita, reaffirmed that the government is accelerating the competitiveness of the cosmetics, perfume, and wellness industries as part of its strategy to increase national industrial value-added. The domestic cosmetics market also shows highly promising prospects.

With a large population dominated by a productive-age demographic, Indonesia has become one of the largest cosmetics markets in the region. “The cosmetics, perfume, and wellness industries hold significant potential to grow and become key pillars of national industrial development. The government will continue to support them through enabling policies, facilitation, capacity-building, and strengthening of the industrial ecosystem to compete globally,” he said in Jakarta on Monday , May 4, 2026.

Minister Agus noted that the national cosmetics sector is one of the priority subsectors with strong performance. Based on data from the Food and Drug Monitoring Agency (BPOM), by 2025 the number of cosmetics businesses in Indonesia had surpassed 1,500, with more than 90 percent classified as small and medium industries (SMEs).

This highlights that the sector is not only dominated by large corporations but also serves as a growth platform for local entrepreneurs and manufacturing SMEs.

Director General of Small, Medium, and Miscellaneous Industries (IKMA), Reni Yanita, emphasized that SMEs must continue to innovate while identifying market opportunities and consumer needs. “Cosmetics SMEs must also be aware of and comply with safety standards to deliver high-quality products,” she said during the Grand Opening of Prioritas Wellness Indonesia in Tangerang.

According to her, the presence of modern, high-standard manufacturing facilities is essential to strengthen the national industrial structure and serve as a benchmark for SME production lines that meet global standards.

“The launch of this production facility is a strategic step in expanding business capacity and sends a positive signal that the national manufacturing sector—particularly cosmetics, perfume, and wellness—continues to demonstrate strong growth and attractiveness for investors,” she said.

Reni further noted that Indonesia’s cosmetics market value reached approximately USD 9.74 billion in 2025, with projected annual growth ranging between 4.33 percent and 4.37 percent. Export performance has also improved, rising from USD 416,800 in 2024 to USD 473,800 in 2025.

“With strong market value and export performance, Indonesia’s cosmetics industry has significant opportunities to strengthen its position in the global market. This must be supported by enhanced domestic production capacity and improved product quality to ensure sustainable competitiveness,” she said.

The Ministry of Industry, through the Directorate General of IKMA, will continue implementing various development programs to boost industry competitiveness. These include human resource capacity-building, certification and licensing assistance, machinery restructuring, supply chain partnerships, as well as promotion and market expansion initiatives.

This momentum is considered crucial to increasing domestic production capacity and strengthening globally competitive local brands. Meanwhile, Director of Chemical, Textile, and Craft SMEs, Budi Setiawan, stated that the Prioritas Wellness Indonesia manufacturing facility represents not only the start of factory operations but also reflects optimism that Indonesia can become a major global player in the cosmetics, perfume, and wellness industries.

“This facility is expected to boost national production capacity, strengthen partnerships with SMEs, and create new job opportunities. Additionally, the use of local raw materials must continue to be encouraged to increase national industrial value-added,” he concluded.