Cosmetics Producers Seek to Reduce Raw Material Imports

Jakarta (ANTARA) - Cosmetics producers affiliated with the Indonesian Cosmetics Companies Association (Perkosmi) are striving to reduce imports of raw materials by promoting increased domestic production of those materials. “What we are continuously endeavouring with the government is how we can encourage the production of those raw materials, which we previously imported, especially those with abundant bases in Indonesia, such as palm oil-based ones, so that they can be produced in Indonesia,” said Perkosmi General Chairman Sancoyo Antarikso in Jakarta on Wednesday. He stated that the cosmetics industry requires a stable supply of high-quality raw materials that meet standards at competitive prices. According to him, around 80 percent of cosmetics raw materials still need to be imported, with only about 20 percent supplied by domestic producers. Meanwhile, CEO of Martha Tilaar, Kilala Tilaar, said that approximately 85 percent of the cosmetics industry’s raw materials still must be imported. This situation forces domestic cosmetics industry players to incur higher raw material costs when the rupiah exchange rate weakens against the US dollar. Kilala Tilaar said that cosmetics industry players are also facing increased product packaging costs due to rising plastic prices, as well as higher operational costs from increased fuel prices. The war involving Iran, the United States, and Israel has triggered rises in oil fuel prices and petroleum derivative products like plastic raw materials. According to Kilala Tilaar, the increases in raw material prices, packaging costs, and operational expenses are likely to prompt cosmetics producers to raise product prices by at least in the third and fourth quarters of 2026. “It could be 3 percent to 11 percent,” she said, referring to the range of cosmetics product price increases. Despite facing many challenges, Sancoyo is confident that the domestic cosmetics industry can continue to grow this year. “Based on projections from various research institutions, including Statista, the value of the Indonesian cosmetics market in 2026 is estimated to reach more than $10 billion with an average growth rate of over 5.5 percent for the next five years,” he said.