Jakarta (VNA) – Indonesia’s cosmetics industry is emerging as one of the most dynamic markets in Southeast Asia, posting impressive growth in recent years.
Key drivers include its large population, expanding middle class, and rapidly rising demand for beauty products, especially among young consumers. The market has reached billions of US dollars and is projected to maintain strong growth in the medium term.
According to the National Research and Innovation Agency (BRIN), the country’s cosmetics industry has grown by 77% over the past five years, reflecting the vast potential of the domestic market, which is expected to reach around 7.5 billion USD in 2024–2025.
Against this backdrop, Indonesia is accelerating its strategy to develop the cosmetics industry through research and technological innovation. BRIN Director Arif Satria emphasised that mastering technology and promoting applied research are key to reducing dependence on imports and enhancing the industry’s competitiveness.
One of Indonesia’s major advantages lies in its abundant natural resources. The country boasts a wide range of herbs, essential oils, and indigenous raw materials such as palm, coconut, cinnamon, and turmeric. This provides a solid foundation for developing natural and “halal” cosmetics, a segment that is gaining popularity globally.
To capitalise on this strength, BRIN is focusing on building a comprehensive value chain from upstream to downstream. Upstream efforts centre on ensuring a stable and high-quality supply of raw materials, while downstream activities prioritise deep processing and the development of high value-added products.
A key focus is research on essential oil processing, a vital input for perfumes, serums, and skincare products. Through networking programmes, the agency aims to bridge the gap between research and business needs, thereby promoting the commercialisation of scientific results./.
