Indonesia’s cosmetics industry has witnessed remarkable growth, driven by the active participation of Small and Medium Enterprises (SMEs) utilizing local ingredients and cultural traditions. According to BPOM and the Indonesian Cosmetics Association (Perkosmi), 89.2% of the country's 1,039 cosmetic businesses in 2023 were SMEs. This inclusivity highlights the potential for local entrepreneurs to excel in the beauty sector.

Reni Yanita, Director General of Small, Medium, and Various Industries (IKMA) at the Ministry of Industry (Kemenperin), emphasized the vital role of SMEs in shaping the market. "The dominance of SMEs in the cosmetic industry shows how inclusive and promising this sector is for local entrepreneurs," she remarked.

To support these businesses, Kemenperin organizes an annual Cosmetic Day, which fosters public awareness, product engagement, and sales for local brands. Collaborating with industry associations, brand owners, and beauty communities, the initiative showcases the creativity and innovation of Indonesia’s cosmetic sector.

One standout program is the IKM Cosmetics Startup Competition 2024, which recognized three innovative companies: Keyoura, Oiland, and IUMI. Keyoura clinched the top spot with its Ageless Series skincare products, designed for mature skin using natural ingredients like red fruit oil and licorice extract. These products promise hydration, brightening, and rejuvenation for consumers aged 30 and above.

Oiland, established in Bali in 2018, merges ancient aromatherapy techniques with essential oils, offering transformative fragrances for emotional well-being. Meanwhile, IUMI emphasizes sustainability by using organic, non-toxic materials, collaborating with Universitas Andalas to develop natural ingredients for eco-friendly personal care products.

This vibrant ecosystem, supported by Kemenperin and industry stakeholders, showcases the global potential of Indonesia’s cosmetic industry through innovation and cultural richness.

WARTAEKONOMI