{
    "success": true,
    "data": {
        "id": 1722205,
        "msgid": "cosmetics-producers-seek-to-reduce-raw-material-imports-1778183886",
        "date": "2026-05-06 20:03:29",
        "title": "Cosmetics Producers Seek to Reduce Raw Material Imports",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Business",
        "summary": "Indonesian cosmetics producers, represented by the Indonesian Cosmetics Companies Association (Perkosmi), are pushing for increased domestic production of raw materials to cut reliance on imports, which currently account for 80-85% of supplies. Industry leaders highlight challenges like higher costs due to a weakening rupiah, rising plastic and fuel prices amid geopolitical tensions, potentially leading to product price hikes of 3-11% in late 2026. Despite these hurdles, the sector is projected to grow robustly, with the market expected to exceed $10 billion by 2026 at an average annual rate over 5.5%.",
        "content": "<p>Jakarta (ANTARA) - Cosmetics producers affiliated with the Indonesian\nCosmetics Companies Association (Perkosmi) are striving to reduce\nimports of raw materials by promoting increased domestic production of\nthose materials. \u201cWhat we are continuously endeavouring with the\ngovernment is how we can encourage the production of those raw\nmaterials, which we previously imported, especially those with abundant\nbases in Indonesia, such as palm oil-based ones, so that they can be\nproduced in Indonesia,\u201d said Perkosmi General Chairman Sancoyo Antarikso\nin Jakarta on Wednesday. He stated that the cosmetics industry requires\na stable supply of high-quality raw materials that meet standards at\ncompetitive prices. According to him, around 80 percent of cosmetics raw\nmaterials still need to be imported, with only about 20 percent supplied\nby domestic producers. Meanwhile, CEO of Martha Tilaar, Kilala Tilaar,\nsaid that approximately 85 percent of the cosmetics industry\u2019s raw\nmaterials still must be imported. This situation forces domestic\ncosmetics industry players to incur higher raw material costs when the\nrupiah exchange rate weakens against the US dollar. Kilala Tilaar said\nthat cosmetics industry players are also facing increased product\npackaging costs due to rising plastic prices, as well as higher\noperational costs from increased fuel prices. The war involving Iran,\nthe United States, and Israel has triggered rises in oil fuel prices and\npetroleum derivative products like plastic raw materials. According to\nKilala Tilaar, the increases in raw material prices, packaging costs,\nand operational expenses are likely to prompt cosmetics producers to\nraise product prices by at least in the third and fourth quarters of\n2026. \u201cIt could be 3 percent to 11 percent,\u201d she said, referring to the\nrange of cosmetics product price increases. Despite facing many\nchallenges, Sancoyo is confident that the domestic cosmetics industry\ncan continue to grow this year. \u201cBased on projections from various\nresearch institutions, including Statista, the value of the Indonesian\ncosmetics market in 2026 is estimated to reach more than $10 billion\nwith an average growth rate of over 5.5 percent for the next five\nyears,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/cosmetics-producers-seek-to-reduce-raw-material-imports-1778183886",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}