Indonesia’s National Research and Innovation Agency is intensifying its focus on strategic research to strengthen the country’s rapidly expanding cosmetics sector, aiming to boost innovation, improve product quality, and reduce dependence on imported brands.
The initiative comes amid significant growth in Indonesia’s domestic cosmetics market, which has surged in recent years and is projected to continue expanding. Speaking during the “BRIN Goes to Industry III” event in Jakarta on Thursday, BRIN Head Arif Satria highlighted the urgency of aligning research capabilities with industrial needs to sustain this momentum.
“The cosmetics industry has a very large market. It has grown by around 77 percent from 2020 to 2025,” Satria said, underscoring the scale of opportunity for domestic players.
He stressed that meeting this rising demand will require more than production capacity alone. Instead, it depends on the ability of Indonesian companies to develop competitive innovations and adopt advanced technologies that can serve as long-term growth drivers.
“We can only meet this market if we have superior innovations and good technology, so they can be implemented as growth engines for the industry,” he added.
Indonesia’s cosmetics market is estimated to reach approximately $7.5 billion between 2024 and 2025, reflecting strong consumer demand driven by a growing middle class, increasing awareness of personal care, and the influence of digital commerce.
Despite this growth, imported brands continue to dominate significant segments of the market. Satria noted that strengthening domestic capabilities is essential to ensuring that Indonesian producers can capture a larger share of this expanding industry.
To achieve this, BRIN is prioritizing research that supports both upstream and downstream segments of the cosmetics value chain. The approach aims to move Indonesia beyond its traditional role as a supplier of raw materials toward becoming a producer of higher-value finished goods.
“We want added value in Indonesia. That means we must continue to develop both upstream and downstream processes,” Satria said.
Upstream development, he explained, is crucial to ensuring a stable supply of high-quality raw materials. This includes improving cultivation, extraction, and processing techniques for natural ingredients widely used in cosmetic products.
Indonesia is rich in biodiversity, offering a wide range of plant-based resources that can be utilized in cosmetics, from essential oils to herbal extracts. However, inconsistent quality and supply have often limited their industrial application.
“Upstream processes are important so industries that require our raw materials can obtain quality, continuous supplies,” Satria noted.
At the same time, downstream development focuses on manufacturing, formulation, and branding—areas where much of the added value in the cosmetics industry is generated. Strengthening these capabilities would allow Indonesian companies to compete more effectively with global brands.
Industry experts have long pointed out that without strong integration between upstream and downstream sectors, countries risk remaining trapped in low-value segments of the global supply chain. BRIN’s strategy seeks to address this challenge by bridging research and industrial production.
One of the key areas of focus is essential oil processing. These oils are widely used as core ingredients in products such as perfumes, serums, and facial creams. By improving extraction technologies and refining processes, researchers aim to enhance both the quality and commercial viability of locally sourced materials.
Through the “BRIN Goes to Industry III” program, the agency is working to strengthen collaboration between researchers and industry players. The initiative is designed to ensure that scientific research is directly aligned with market needs, enabling faster adoption of innovations.
Satria emphasized that such collaboration is essential for building a resilient and competitive industry. “We want to create synergy between research and industrial needs, so that both sectors can grow stronger together,” he said.
The program also reflects a broader shift in Indonesia’s economic strategy toward innovation-driven growth. As global competition intensifies, countries are increasingly investing in research and development to enhance productivity and create higher-value products.
In the cosmetics sector, innovation plays a critical role not only in product formulation but also in areas such as packaging, sustainability, and digital marketing. Consumers are becoming more discerning, seeking products that combine quality, safety, and environmental responsibility.
For Indonesia, leveraging its natural resources while adopting modern technologies presents a unique opportunity. By integrating traditional knowledge with scientific research, the country could develop distinctive products that appeal to both domestic and international markets.
However, achieving this vision will require sustained investment and coordination across multiple stakeholders, including government agencies, research institutions, and private companies.
Satria noted that BRIN remains committed to supporting industries through ongoing research initiatives. The agency aims to act as a catalyst for innovation, helping businesses translate scientific findings into commercially viable products.
“BRIN will continue conducting research that supports the growth of industries in the country,” he said.
Observers say that the success of these efforts will depend on how effectively research outputs are implemented at the industrial level. Bridging the gap between laboratories and production lines has historically been a challenge, but programs like BRIN Goes to Industry are intended to address this issue.
The growing cosmetics market offers significant economic potential, not only in terms of revenue but also job creation and export opportunities. Strengthening the domestic industry could reduce reliance on imports while positioning Indonesia as a competitive player in the global market.
At the same time, the focus on upstream development could benefit rural communities involved in the cultivation and processing of natural ingredients, creating more inclusive economic growth.
As Indonesia continues to expand its research capabilities, the integration of science and industry is expected to play an increasingly central role in national development. The cosmetics sector, with its strong growth trajectory and reliance on innovation, is emerging as a key area where this approach can deliver tangible results.
With demand rising and competition intensifying, the push to strengthen research and industrial collaboration may determine how successfully Indonesia can transform its natural resource advantages into sustainable economic gains.
