Cendekia Updates
Local Ingredients, Global Impact: Advancing Sustainable Sourcing in Indonesia’s Beauty Industry
15 May 2025
The future of the cosmetics industry is being reshaped—not just by innovation, but by values. At Indonesia Cosmetic Ingredients (ICI) 2025, Cendekia Iklim Indonesia (CII) joined a timely panel on Responsible Sourcing, speaking alongside policymakers, entrepreneurs, and sustainability leaders under the theme: “Mengangkat Potensi Bahan Baku Kosmetik Lokal yang Berkelanjutan: Untuk Lingkungan, Kesehatan, dan Masa Depan Industri Kosmetik Indonesia.”
Opening the session, Agam Subarkah, CEO and Founder of Cendekia Iklim Indonesia, laid out a compelling vision: the rise of clean beauty is a market transformation, not just a trend. Today’s consumers expect transparency, safety, and environmental integrity from the products they use—and from the brands they support.
“The global cosmetics industry is moving decisively toward clean beauty,” Agam said. “Consumers are looking for products that are safe, natural, and ethically produced. This is reshaping how value is created in the industry.”
Citing supporting data, he noted that the global clean beauty market was valued at USD 8.25 billion in 2023, with annual growth expected to reach 14.8%. In the Asia-Pacific region, consumers are willing to pay 10–20% more for products with high-quality natural ingredients—signaling a strong incentive for Indonesia to leverage its rich biodiversity.
Indonesia is home to over 30,000 plant species with known medicinal or aromatic potential, many of which remain underutilized. However, unlocking their full potential depends on more than biodiversity—it requires robust infrastructure, reliable data, and local capacity.
One challenge Agam addressed is the lack of accessible supply chain data, particularly regarding the availability, volume, and distribution of raw materials.
“We often talk about local ingredients, but do we actually know where they are and in what volume? Reliable data on supply availability is still hard to find,” he said. “That’s why we at Cendekia Iklim conducted a mapping study on sustainable sourcing—to help fill that gap.”
He explained that CII’s Sustainable Sourcing Mapping research could be a valuable resource for industry players, especially those looking to integrate local commodities into their formulations in a way that is traceable, ethical, and climate-aligned.
“We’re open to sharing this research with stakeholders—brands, formulators, and government partners—so we can move forward together with clearer, data-driven strategies,” Agam added.
He also reiterated the need for community-based incubators that can serve as intermediaries between farmers and industry—ensuring quality, consistency, and fair pricing.
“There are thousands of farmers across Indonesia, but we can’t engage them one by one. We need localized institutions that can support community development and act as a bridge to industry,” he said.
Opening the session, Agam Subarkah, CEO and Founder of Cendekia Iklim Indonesia, laid out a compelling vision: the rise of clean beauty is a market transformation, not just a trend. Today’s consumers expect transparency, safety, and environmental integrity from the products they use—and from the brands they support.
“The global cosmetics industry is moving decisively toward clean beauty,” Agam said. “Consumers are looking for products that are safe, natural, and ethically produced. This is reshaping how value is created in the industry.”
Citing supporting data, he noted that the global clean beauty market was valued at USD 8.25 billion in 2023, with annual growth expected to reach 14.8%. In the Asia-Pacific region, consumers are willing to pay 10–20% more for products with high-quality natural ingredients—signaling a strong incentive for Indonesia to leverage its rich biodiversity.
Indonesia is home to over 30,000 plant species with known medicinal or aromatic potential, many of which remain underutilized. However, unlocking their full potential depends on more than biodiversity—it requires robust infrastructure, reliable data, and local capacity.
One challenge Agam addressed is the lack of accessible supply chain data, particularly regarding the availability, volume, and distribution of raw materials.
“We often talk about local ingredients, but do we actually know where they are and in what volume? Reliable data on supply availability is still hard to find,” he said. “That’s why we at Cendekia Iklim conducted a mapping study on sustainable sourcing—to help fill that gap.”
He explained that CII’s Sustainable Sourcing Mapping research could be a valuable resource for industry players, especially those looking to integrate local commodities into their formulations in a way that is traceable, ethical, and climate-aligned.
“We’re open to sharing this research with stakeholders—brands, formulators, and government partners—so we can move forward together with clearer, data-driven strategies,” Agam added.
He also reiterated the need for community-based incubators that can serve as intermediaries between farmers and industry—ensuring quality, consistency, and fair pricing.
“There are thousands of farmers across Indonesia, but we can’t engage them one by one. We need localized institutions that can support community development and act as a bridge to industry,” he said.
The discussion then expanded to field-based experiences. Erna Subroto, PhD, Head of Extract From This Island, and Nadia Vashti Lasrindy, S.T., M.Arch., Co-founder of Yagi Forest, shared lessons from working with Indonesian plant-based ingredients—highlighting the importance of ethical extraction, transparent value chains, and science-based validation. Their insights reinforced the need for sourcing models that not only protect ecosystems but also ensure long-term viability for producers.
From a governance perspective, Ristika Putri of LTKL (Lingkar Temu Kabupaten Lestari) spoke about how local governments are stepping up to play a strategic role. She shared that LTKL is currently collaborating with nine regencies across Sumatra, Kalimantan, and Sulawesi to align sustainable land-use planning with the needs of the cosmetic and natural ingredients industry. These cross-regional collaborations aim to create integrated sourcing landscapes—connecting conservation, production, and local economic development.
Natasha Dewayani from Forest Wise and Nadia Vashti echoed this systems-based approach, calling for stronger integration between upstream communities, forest management, and downstream markets. Meanwhile, key government representatives—including Eripson M.H. Sinaga, S.ST, MM. (Assistant Deputy for Agro, Chemical, Pharmaceutical, and Textile Industry Development, Coordinating Ministry for Economic Affairs), Budi Setiawan (Director of IKM for Chemicals, Textiles, and Handicrafts, Ministry of Industry), and Dr. Ir. Tri Ligayanti, S.T., M.Si (Director of Downstream Chemical and Pharmaceutical Industry, Directorate General of Chemical, Pharmaceutical, and Textile Industries, Ministry of Industry)—affirmed the government’s commitment to supporting responsible sourcing and sustainable innovation.
From a governance perspective, Ristika Putri of LTKL (Lingkar Temu Kabupaten Lestari) spoke about how local governments are stepping up to play a strategic role. She shared that LTKL is currently collaborating with nine regencies across Sumatra, Kalimantan, and Sulawesi to align sustainable land-use planning with the needs of the cosmetic and natural ingredients industry. These cross-regional collaborations aim to create integrated sourcing landscapes—connecting conservation, production, and local economic development.
Natasha Dewayani from Forest Wise and Nadia Vashti echoed this systems-based approach, calling for stronger integration between upstream communities, forest management, and downstream markets. Meanwhile, key government representatives—including Eripson M.H. Sinaga, S.ST, MM. (Assistant Deputy for Agro, Chemical, Pharmaceutical, and Textile Industry Development, Coordinating Ministry for Economic Affairs), Budi Setiawan (Director of IKM for Chemicals, Textiles, and Handicrafts, Ministry of Industry), and Dr. Ir. Tri Ligayanti, S.T., M.Si (Director of Downstream Chemical and Pharmaceutical Industry, Directorate General of Chemical, Pharmaceutical, and Textile Industries, Ministry of Industry)—affirmed the government’s commitment to supporting responsible sourcing and sustainable innovation.
They emphasized that while Indonesia’s cosmetics industry continues to grow, sustainability and traceability are becoming critical to maintaining long-term competitiveness and international relevance. The message was clear: transitioning to sustainable local ingredients is not just about social impact—it’s about strategic positioning. By combining science, policy support, equitable value distribution, and robust data, Indonesia has a real opportunity to lead the next wave of clean, ethical beauty on the global stage.
Through its engagement at ICI 2025, Cendekia Iklim Indonesia reaffirmed its role in building a future-ready beauty sector—one that is climate-conscious, inclusive, and proudly rooted in Indonesia’s natural heritage.
Through its engagement at ICI 2025, Cendekia Iklim Indonesia reaffirmed its role in building a future-ready beauty sector—one that is climate-conscious, inclusive, and proudly rooted in Indonesia’s natural heritage.
