Jakarta. Indonesia is now capable of competing with international players in the skincare industry, according to Rizka Andalucia, Acting Head of Indonesia's National Agency of Drug and Food Control (BPOM).

"We have reached a point where we can compete with South Korea. Our domestic cosmetic industry is excelling, both in terms of packaging and product quality," Rizka said in Jakarta on Friday.

Rizka highlighted Indonesia's vast potential in skincare product development, particularly emphasizing aloe vera, which grows abundantly across the country.

"Aloe vera is plentiful in Indonesia, often growing wild and underutilized," she noted.

The skincare industry in Indonesia is expected to continue its growth, identified as a priority sector in the National Industrial Development Plan (RIPIN).

"Cosmetics are a key industry alongside pharmaceuticals and food," Rizka explained.

According to Expert Market Research, the South Korean market for cosmetics reached a value of more than $17.45 billion in 2023. This market is expected to grow at a 5.4 percent rate annually between 2024 and 2032, reaching $28.02 billion by 2032.

Meanwhile, Indonesia's cosmetic industry is catching up. According to BPOM data, the number of cosmetic companies in Indonesia increased from 913 in 2022 to 1,010 in 2023. The national cosmetics industry has also penetrated the export market, with cumulative exports of cosmetics, fragrances, and essential oils reaching $770.8 million from January to November 2023.

Among the products produced by Indonesian cosmetic companies, personal care dominates the market with a volume of $3.18 billion in 2022, followed by skincare at $2.05 billion, cosmetics at $1.61 billion, and fragrances at $39 million.

The national market size is projected to reach 467,919 products in 2023, marking a tenfold increase over the past five years.

Furthermore, sales of personal care and cosmetics have surged in recent years, driven by the rapid growth of e-commerce in Indonesia. From 2018 to 2022, personal care and cosmetics ranked among the top three sales categories on marketplaces, with transaction values reaching Rp 13,287.4 trillion and transaction volumes of 145.44 million.

Data from the National Industrial Information System shows that the cosmetics industry employs 59,886 people as of 2022.