Indonesia’s Cosmetics Industry Gains Ground in Global Markets

RRI.CO.ID, Jakarta - Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, said the success of small and medium industries (IKM) in entering international markets demonstrates that Indonesian-made cosmetics are becoming increasingly competitive in terms of quality, safety, and innovation. He made the statement in Jakarta on Wednesday, September 16, 2026.

“The government will continue to support the cosmetics, perfume, and wellness industries to further improve their export performance. Indonesian-made cosmetics are increasingly trusted in global markets because they offer good quality, are safe, and have demonstrated benefits for consumers,” the Industry Minister said, as quoted in an official statement.

He also affirmed that Indonesia’s cosmetics industry has significant potential for further development as changing lifestyles increasingly prioritize health, fitness, quality, and wellness values. This growth momentum needs to be leveraged by domestic industry players to strengthen production capacity, enhance innovation, and build local brands capable of competing in international markets.

The potential is reflected in the performance of Indonesia’s cosmetics exports, which reached USD473.8 million in 2025, up 13.7 percent from USD416.8 million in 2024.

“This increase in export performance demonstrates that domestic cosmetics companies continue to grow while improving product quality and expanding market access. This potential must be fully utilized by domestic industries, including small and medium enterprises,” he said.

The Minister conveyed the perfume and fragrance subsector also has promising prospects as these products increasingly become part of consumers’ everyday needs and lifestyles. The growing market potential is creating opportunities for new industrial entrepreneurs who are adaptive and innovative.

“Strong market interest in fragrance products presents a major opportunity for the national industrial ecosystem to create new entrepreneurs who are adaptive, innovative, and ready to become leading players in the global market,” he said.

According to data from the Food and Drug Supervisory Agency (BPOM) as of July 2026, the number of cosmetics businesses in Indonesia had reached 1,655, with more than 87 percent classified as small and medium industries. In addition, more than 370,000 cosmetic products had been registered with BPOM as of August 2026. The figures reflect the industry’s substantial business base as well as the room for new entrepreneurs to enter the cosmetics sector.

To capitalize on these opportunities, the Ministry of Industry, through the Directorate General of Small, Medium and Miscellaneous Industries (IKMA), continues to implement integrated development programs for cosmetics businesses, including perfume producers. The assistance focuses on strengthening legal compliance, improving product quality and standards, expanding business capacity and market access, and facilitating compliance with Good Manufacturing Practices for Cosmetics (CPKB) certification.