Indonesia backs SME beauty manufacturers amid rising export gains

INDONESIA –  The Ministry of Industry of Indonesia is intensifying support for small and medium-sized cosmetics manufacturers (SMEs) to boost their competitiveness and widen access to international markets. 

In a ministry statement, Industry Minister Agus Gumiwang Kartasasmita said cosmetic products from Indonesia are increasingly trusted globally due to their “good quality, safety, and proven benefits for consumers,” and he emphasized the sector’s potential to strengthen domestic production, accelerate product development, and build local brands capable of competing internationally.

Cosmetics exports in Indonesia reached USD 473.8 million in 2025, up 13.7% from USD 416.8 million in 2024, a trend the ministry attributes to industry players continuously improving quality and expanding market reach.

Kartasasmita said, “This growth in export performance is proof that industry players continue to develop and improve their quality as well as market reach.”

“This potential must be leveraged by the domestic cosmetics industry, including small and medium enterprises.” 

Data from the Food and Drug Monitoring Agency (BPOM), cited by the ministry, show Indonesia had 1,655 cosmetics businesses in July 2026, with more than 87% classified as SMEs, and over 370,000 cosmetics products registered with the regulator by August.

The ministry highlighted Tangerang-based SME Followme Indonesia as an example of a local manufacturer moving into export markets, having recently shipped perfume and hair gel products worth approximately USD  40,436 to Papua New Guinea. 

Followme Indonesia has received government support through manufacturing certification, machinery restructuring, participation in trade exhibitions, and export-development programs, and has also taken part in a partnership program with fragrance ingredient supplier Indesso Aroma. 

In parallel, global fragrance companies are expanding their capabilities in Indonesia, signaling confidence in the country’s growth prospects and its role in serving the wider Southeast Asian beauty and fragrance market. 

dsm-firmenich has opened a Jakarta center featuring fragrance creation and application laboratories, sensory facilities, and air care testing capabilities, while Givaudan opened its 10 Capital creative center in Jakarta earlier this year to enable its Consumer Products and Fine Fragrance teams to collaborate with local entrepreneurs and brands on product development.

Cosmetics distributed in Indonesia must hold halal certification by October 17, 2026, under the country’s phased enforcement of compulsory halal certification.

Earlier this year, Indonesia’s food and drug agency also seized more than two million units of unregistered cosmetics spanning 956 product lines, most of which had been imported from China without approval and sold through e-commerce channels.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.