Indonesia’s cosmetic products especially essential oils an toiletries was among the commodities to rely on in promoting export of non oil gas products. This was set forth by the Minister of Trade Rachmat Gobel upon inaugurating the head office and new factory of PT Mandom Indonesia Tbk. At Cibitung, Bekasi West Java on Friday (12/6). “The Government is optimistic that this company as one of the biggest cosmetic producer in Indonesia producing essential oils and toiletries would contribute to jack up of Indonesia’s non oil gas products.”
So far the company had exported their products to ASEAN, the Middle East, and even Europe. “This means that Indonesia’s essential oils and toiletries is highly competitive at the global market.” Trade Minister Rachmat Gobel said. export of Indonesia’s essentials oils and toiletries in 2014 had come to USD 301 million”
With inauguration of this factory the company was expected to increase export. The inauguration ceremony was attended by Executive President of Mandom Corporation Japan Motonibu Nishimura, Senior Executive Officer Kajima Corporations Keisuke Koshijima, President Director and Chief Executive Officer PT MI Tbk Tekshi Hibi and CEO of PT MI Tbk Muhammad Makmun Asyad. Considering their quality ad global competitiveness Ministry of Trade Rachmat expected the company would focus marketing on export,
“As producer of diversified cosmetics, I expect the company could focus on export business and be one of Asia’s global company based in Indonesia,” he said, Since 1969 PT MI Tbk continued to develop business in Indonesia. Haircare products and perfumes were already well known among consumers like Gatsby, Pixy, and Pucelle. Brands like Tancho, Mandom, Spalding, lovilea, Mitatone, were produced for export.
The Ministry of Trade was committed to increase export through product diversification with emphasis on manufacturing 65% and primary products 35%. Other effort was diversification of export market, and increasing production of value-added products, to intensify sales promotion campaigns and tackle hindrances of non tariff barriers, and enhance role of Indonesian Trade Attaches in Indonesian Embassies abroad.
MINISTRY OF Trade Rachmat expected this new factory would jack up performance of cosmetics industry in Indonesia. Growth of this industry would have its impact on absorption of more workers which would eventually buoyed up Indonesia’s economy. Today PT MI Tbk had exported their products to many countries among others Uni Arab Emirates, Japan, India, Malaysia and Thailand. Through UEA the products were re-exported to countries of America, the Middle East, east Europe and other countries. With far reaching export capacity, the Minister of Trade motivated producers of cosmetics and toiletries products to grab market opportunities in Asean Economic Community.
Export of Essential Oil Products and Toiletries mostly exported by Indonesia in 2014 were mostly soap, organic surf-act prep for soap use, bars etc./HS 3401 (12.18%) beauty, make up and skin care prep, manicure etc prep. HS 3304 (10.45%), odoriferous as raw materials for industry/HS 3302 (8.15%) and perfumes and toilet waters/HS 3303 (8.91%), The main export destination countries of Indonesia’s oil and toiletries in the period of January to March 2015 were Singapore with total export value of USD 38.17%, (12.67%), Thailand USD 27.6 million (9.17%), Philippines USD 23,8 million (7.9%) UEA USD 22.17 million (7.36%) and Malaysia USD 20,8 million (6.9%).
Data of the Ministry of Industry had it that the national jamu herbal and cosmetics and cosmetics industry contributed quite significantly in terms of export, turnover, and workers employment. In 2012, total export of cosmetic products came to Rp9 trillion or triple that of the previous Rp3 trillion. Domestic sales also posted increase, in 2013 it came to Rp11.2 trillion or growing by 15% compared to 2012 at Rp 9.7 trillion. In terms of employment, 760 cosmetic factories spread out all over Indonesia had absorbed 75,000 workers directly and 600,000 workers indirectly. (SS)
Business News - June 17, 2015