Indonesia’s Cosmetics Industry Faces Strict Regulations and High Costs Under New Halal Mandate
JAKARTA – The Indonesian Cosmetics Association (PPAK) remains confident about growth prospects for the nation’s beauty industry, driven by sustained domestic demand for cosmetic products.
According to Solihin Sofian, Chairman of PPAK and CEO of PT Prioritas Jaya Indonesia, the beauty sector expanded by approximately 5-6% throughout 2025. Body care products led this growth, with skin care items following closely behind.
The industry’s resilience during 2025, despite global economic turbulence and geopolitical tensions, signals promising opportunities ahead. However, this robust expansion has intensified competition between domestic and imported products in the market.
Halal Cosmetics: A Promising Opportunity
The halal cosmetics segment presents particularly attractive prospects for local manufacturers. PPAK supports the government’s upcoming mandatory halal certification requirement for cosmetic products in 2026, viewing it as a chance for Indonesian producers to strengthen their market position.
Nevertheless, industry players face significant hurdles. The stringent regulatory requirements and expensive certification process remain major obstacles for many companies seeking compliance.
In a Closing Bell interview on CNBC Indonesia (Monday, January 19, 2026), Solihin Sofian discussed both the potential and challenges facing Indonesia’s halal cosmetics sector as the industry prepares for the new regulatory landscape.
The beauty sector’s continued strength demonstrates Indonesian consumers’ ongoing commitment to personal care products, even amid broader economic uncertainties.
Original Article:
CNBC Indonesia. (2026, January 19). Video: Wajib Halal, Industri Kosmetik Hadapi Aturan Ketat-Biaya Mahal. Retrieved from https://www.cnbcindonesia.com/news/20260115170105-8-702786/video-wajib-halal-industri-kosmetik-hadapi-aturan-ketat-biaya-mahal
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