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Cosmetics and Toiletries Indonesia

Cosmetics Market Brief Indonesia (2008)

The cosmetics industry in Indonesia has experienced tremendous growth in the last three years. The sales prospects remain good with steady growth projected over the next two years. While local products account for over 80 percent of the market share, imported cosmetics with international brands are widely available in the Indonesian market. Despite rapid growth in the industry and sharp competition among brands, Indonesia is still a good potential market for imported cosmetics. The market is expected to grow at an average of 10-15 percent annually.

U.S. products have a strong presence in Indonesia. Other competitors come from China, U.K., France, Germany and Japan. Consumers lifestyles, increased awareness of personal grooming, introduction of new products, growth of modern retail outlets and high-end shopping malls, and increasing number of beauty services offered, should lead to positive growth in the cosmetic sector. Couple these with a population of 220 million people, Indonesia presents a market with strong growth and a good opportunity for U.S. cosmetics.

Cosmetics Market Brief Indonesia (2009)

Indonesian imports of cosmetics reached an estimated of $250 million in 2008, a 34 percent increase over the 2007 figure of $187 million. U.S. products accounted for over $10 million of all imported cosmetic products. The sales prospects remain good with steady growth projected over the next two years. While local products account for over 80 percent of the market share, imported cosmetics with international brands are widely available in the Indonesian market. Despite rapid growth in the industry and sharp competition among brands, Indonesia is still a good potential market for imported cosmetics. The market is expected to grow at an average of 10-15 percent annually.

There are no restrictions on importing cosmetic products to Indonesia. However, imported cosmetics must be registered at the National Agency of Drug and Food Control (Indonesian acronym BPOM). Registration of imported cosmetics can be done only by local agents or distributors. Import duties for cosmetic products are 10 percent. In addition, a value-added tax (VAT) of 10 percent is imposed on all imported cosmetic products. BPOM has taken tough measures on registration of imported cosmetics. The current registration process is slow, with indefinite time for results. This might impact the number of newly imported cosmetic products in the long run, as distributors may focus more on existing products in the Indonesian market.

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