Indonesia’s Cosmetics Exports Rise 13.7% as Government Ramps Up SME Support and Tightens Regulatory Oversight

By Kekeletso Nkele, small.news Assistant

(small.news) — Indonesia’s cosmetics exports reached $473.8 million in 2025, a 13.7% increase from $416.8 million the previous year , as the country’s Ministry of Industry moves to strengthen support for the small businesses that dominate the sector and help them compete in international markets, according to Personal Care Insights.

Industry Minister Agus Gumiwang Kartasasmita said the export growth reflects the improving quality, safety, and innovation of Indonesian cosmetics products in global markets, and called on domestic industry players — including small and medium enterprises — to leverage the momentum by continuing to develop product quality and expand their market reach.

SMEs Dominate a Fast-Growing Sector

Indonesia had 1,655 cosmetics businesses as of July 2026, according to data from the country’s Food and Drug Monitoring Agency cited by the ministry, with over 87% classified as small or medium enterprises. By August, more than 370,000 cosmetic products had been registered with the regulator.

Reni Yanita, director general of Small, Medium and Miscellaneous Industries at the Ministry of Industry, cited Followme Indonesia — a Tangerang-based perfume and hair gel manufacturer — as an example of an SME successfully entering export markets. The company recently exported products valued at approximately $40,436 to Papua New Guinea, supported by government assistance covering manufacturing certification, machinery restructuring, trade exhibition participation, and export development programs.

Yanita said Papua New Guinea is a promising neighboring export market that aligns with growing opportunities for Indonesian products in the region, and noted that the success of local brands entering export markets shows what is achievable for the broader SME base.

Global Fragrance Companies Expanding Indonesian Capabilities

International fragrance ingredient firms are simultaneously increasing their presence in Indonesia, signaling broader confidence in the country’s growth trajectory.

DSM-Firmenich has opened a Jakarta center featuring fragrance creation and application laboratories, sensory facilities, and air care testing capabilities. Givaudan opened its 10 Capital creative center in Jakarta earlier this year, providing space for its Consumer Products and Fine Fragrance teams to work directly with local entrepreneurs and brands on product development.

Both investments point to Indonesia’s expanding role as a development and production hub for the wider Southeast Asian fragrance and beauty market.

Mandatory Halal Certification and Regulatory Crackdown Running in Parallel

The sector’s growth is unfolding alongside tighter compliance requirements. All cosmetics distributed in Indonesia must hold halal certification by October 17, 2026 — a deadline that will require small business owners to ensure their products and supply chains meet the standard or risk losing the right to sell in the domestic market.

The partnership aligns with Tanzania’s broader national priorities to increase domestic production, promote value addition, diversify exports, and strengthen regional trade integration.

Regulatory enforcement is also intensifying. The Food and Drug Monitoring Agency seized more than two million units of unregistered cosmetics across 956 product lines earlier this year, most of which had been imported from China without regulatory approval and sold through e-commerce channels. The crackdown signals a tightening environment for both domestic producers and importers operating outside the formal registration process.