The Indonesian government, through the Ministry of Industry and the Perhimpunan Perusahaan Kosmetika Indonesia (Perkosmi), is strengthening the ecosystem of small and medium-sized cosmetic industries (IKM) by expanding partnerships and local supply chains (19/05).

The initiative aims to improve competitiveness in the growing domestic and global cosmetics market.

The Ministry of Industry stated that this strategy is part of a broader effort to build a stronger and more integrated cosmetics industry ecosystem.

Kementerian Perindustrian Republik Indonesia highlighted that collaboration between stakeholders is essential to support long-term industry growth.

Agus Gumiwang Kartasasmita said the cosmetics sector has strong prospects due to rising market demand. He emphasized that industry growth must be balanced with improved quality, innovation, and a stronger ecosystem.

“The cosmetics industry is one of the sectors with very good prospects because it is supported by continuously increasing market demand. With the growing number of business players, we hope this industry can not only meet domestic consumer needs but also expand its contribution to exports and national economic growth,” he stated.

Cosmetic Industry Growth Boosts SMEs and Export Performance in Indonesia

Indonesia’s cosmetics industry continues to show positive growth. Data from Badan Pengawas Obat dan Makanan (BPOM) recorded an increase in the number of domestic cosmetic industries from 1,292 in 2024 to more than 1,500 by the end of 2025.

Around 90 percent of these businesses are classified as SMEs (IKM), showing the dominant role of small-scale enterprises in the sector.

The export value of cosmetics also increased from USD 417 million in 2024 to USD 473.8 million in 2025, reflecting stronger international demand for Indonesian cosmetic products.

Government Expands Kemitraan to Improve Raw Material and Distribution Access

Despite positive growth, SMEs in the cosmetics industry still face several challenges that require collaborative solutions, according to government officials.

Agus Gumiwang Kartasasmita stated that partnerships are essential to strengthen SME competitiveness. Through kemitraan, SMEs can access raw materials and supporting materials through contract manufacturing services, expand distribution networks, and become part of larger industrial supply chains.

He added that collaboration between central and regional governments, associations, academia, large industries, and communities is necessary to build a connected ecosystem that benefits all stakeholders in the industry.

Business Matching at ICI 2026 Supports Local Supply Chain Integration

As part of implementation efforts, the Directorate General of Small, Medium, and Miscellaneous Industries held a Pre-Event Business Matching under the theme “Local Supply Chain for Cosmetic Industry” at JIExpo Kemayoran from 06/05 to 08/05 (06–08/05/2026).

The activity is part of the Indonesia Cosmetics Ingredients (ICI) 2026 exhibition organized by Perkosmi.

Reni Yanita explained that the pre-event serves as an initial stage before the main business matching scheduled for September.

The program provides a platform for SMEs to meet potential business partners and expand cooperation opportunities.

“The presence of this booth plays an important role as a meeting platform between SMEs and potential business partners to expand networks, open partnership opportunities, and explore cooperation that can increase transactions and investment in the national cosmetics sector,” she stated.

Budi Setiawan said that follow-up monitoring will continue to ensure business matching results are implemented effectively.

A total of 29 cosmetic SMEs participated in the pre-event, and several have begun sending product samples to potential partners.

He added that this process is expected to strengthen an independent, competitive, and sustainable cosmetics industry ecosystem.

PHOTO: MINISTRY OF INDUSTRY

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].