COSMETICS AND PERSONAL CARE MARKET IN INDONESIA

With a total population in excess of 215 million inhabitants, Indonesia provides a potential large domestic market for personal care products. Considered to be indispensable in our daily modern life style, such products have already been long established in the Indonesian market. Traditionally, cosmetics, personal and beauty care preparations are deeply rooted and specifically among the ancient Indonesian society and the aristocracy, these products have always been part of the tradition. Indonesia, the largest archipelago in the world, is blessed with rich tropical rain forest and fertile soil, providing abundant natural plants and other materials used as basic ingredients in such products. Even until today, the Indonesian traditional cosmetics products and other beauty care preparations and treatments are gaining more and more popularity among domestic as well as international consumers in view of the popular trend of “back to nature”, whereby people nowadays prefer to use products made of natural materials and ingredients.

Although less sensitive towards overall economic condition, personal care products are generally items people are daily in need of and closely connected with the income level of the consumers. The potential vast domestic market has not only attracted major foreign companies to invest in Indonesia, also domestic manufacturers have expanded into international markets beside established substantial domestic market share. Foreign companies, who are the market leaders in the Indonesian market are UNILEVER INDONESIA, PROCTER & GAMBLE, AVON, BEIERSDORF, CUSSONS, JOHNSON & JOHNSON, SARA LEE, KAO INDONESIA, just to name a few. Renowned international product brands such as AVON, LUX, and LIFEBUOY, CLEAR, SUNSILK, BRISK, BIORE, ZWITSAL, PEPSODENT and many more are present in this market. The latest popular trend “back to nature” has given rise to a number of domestic manufacturers to develop the market; among the famous companies are PT MARTINA BERTO, PT MUSTIKA RATU, PT RISTRA INDOLAB. The latest popular innovation is the beauty treatment and services of a spa, applying traditional and natural formula and ingredients aiming at providing a healthier, more relaxing body and mind. The overall economic and financial condition in Indonesia in the post-crisis era of 1998 is quite promising and progressing; per capita income, US$ 460.- in 1998, the lowest level ever for Indonesia, is expected to exceed US$ 1,100.- for the current year of 2004, an income level also, which will bring Indonesia back into the rank of middle-income level countries. The economy is expected to grow by between 4-5%, assuming that political stability and security is under control. With the completion of the legislative and direct presidential election as well as the formation of the new government by October, 2004 Indonesia shall fully concentrate on further developing and improving the economy and by doing so, improving the purchasing power and living standard of the majority of the population.