Indonesia’s Ministry of Industry is enhancing its support for small and medium-sized cosmetics manufacturers (SMEs) to boost their competitiveness and facilitate access to global markets. Industry Minister Agus Gumiwang Kartasasmita emphasized that recent export increases indicate the improving quality, safety, and innovation of Indonesian cosmetics. He noted that these products are becoming more trusted internationally due to their quality and proven consumer benefits, as stated in a Ministry of Industry release on September 16.
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As SME involvement in the cosmetics sector expands, the ministry reported that Indonesia's cosmetics exports climbed to $473.8 million in 2025, marking a 13.7% increase from $416.8 million in 2024. Kartasasmita commented that this growth reflects ongoing improvements among industry players in both quality and market expansion. He urged the domestic cosmetics sector, particularly SMEs, to take full advantage of this potential.
According to the Food and Drug Monitoring Agency (BPOM), there were 1,655 cosmetics businesses in Indonesia as of July 2026, with over 87% categorized as SMEs. By August, more than 370,000 cosmetics products had been registered with the regulatory body. The ministry highlighted Followme Indonesia, a Tangerang-based manufacturer of perfumes and hair gels, as an example of an SME successfully entering international markets, having recently exported products valued at approximately $40,436 to Papua New Guinea. The company has benefited from government support in areas such as manufacturing certification, machinery upgrades, and participation in trade exhibitions.
Reni Yanita, director general of Small, Medium and Miscellaneous Industries at the Ministry of Industry, noted the successful development of local brands capable of entering export markets. She identified Papua New Guinea as a promising market for Indonesian products due to increasing opportunities.
In tandem with these developments, international fragrance companies are expanding their operations in Indonesia. dsm-firmenich has launched a center in Jakarta equipped with fragrance creation and application laboratories, while Givaudan opened its 10 Capital creative center in the city earlier this year. These investments indicate confidence in Indonesia’s growth potential and its strategic importance in the Southeast Asian fragrance and beauty market.
However, the growth of Indonesia’s beauty market also brings stricter regulatory requirements. All cosmetics sold in Indonesia must obtain halal certification by October 17, 2026. Earlier this year, the food and drug agency confiscated over two million unregistered cosmetic units across 956 product lines, primarily from China, that had been sold through e-commerce without proper approval.