Bogor: Indonesia's cosmetic industry is expected to grow nine percent in 2019 with its potential new markets and high competitiveness, the Industry Ministry said.
"Our target for the cosmetic industry is to grow nine percent this year," the ministry's Director General for Chemical, Pharmaceutical and Textile Industry, Achmad Sigit Dwiwahjono, said in a statement here on Wednesday.
Dwiwahjono was optimistic that robust domestic demand, as well as exports would boost the growth of the industry.
In 2017, the ministry recorded more than 760 companies in the cosmetic industry in Indonesia, of which 95 percent are small- and medium-scale industries.
"Of these companies, some medium and large companies have exported their products to countries in the ASEAN, Africa, the Middle East, and other regions," he remarked.
The country's export of cosmetic products in 2017 reached US$516.99 million or up 16 percent compared to $470.30 million in 2016.
The ministry has focused on efforts to increase the industry's competitiveness through various programs and strategic policies that would strengthen the structure of the sector.
Dwiwahjono cited the importance of using digital technology in the era of the industrial revolution 4.0 to increase the added value of commodities.
"Using technology and digital intelligence from the production process to its distribution to consumers, of course, will provide new opportunities to improve the industry's competitiveness, [especially] with the change in the interest and lifestyles of consumers," he said.
Quoting a report from the Central Statistics Agency (BPS), Indonesia's gross domestic product grew by 5.17 percent in 2018. It was Indonesia's highest annual growth in five years.
In terms of production, the highest growth was achieved by Other Service Business Fields at 8.99 percent. From expenditure side, the highest growth was achieved by the Non-Profit Institution Consumption Component Serving Households (PK-LNPRT) at 9.08 percent.
Java Island contributed the most to GDP which amounted to 58.48 percent, followed by Sumatra Island at 21.58 percent, and Kalimantan Island 8.20 percent. (Antara)