Indonesian Muslim Fashion and Cosmetics IKMs Shine at Dubai World Expo 2020

JAKARTA – As part of efforts to introduce small-to-medium scale industries (IKM) to the international market, the government invited 16 Indonesian IKMs from various sectors to participate in the 2020 Dubai World Expo.

The IKMs chosen for participation mainly represent the leading sectors such as fashion and accessories, cosmetics, food and beverage, as well as startup players who provide technological solutions for IKMs. Most of the products displayed at the Expo are Halal-certified and are of international standard.

“We hope that these showcased IKMs can help increase our export margin in the future,” said the Industry Ministry’s (Kemenperin)’s Acting Director General for Small, Medium and Miscellaneous (IKMA) Industries Reni Yanita. “In fact, we are optimistic that there will be plenty of investors who will be interested in working together with these IKMs through the business forums that we have prepared during the event”.

According to Reni, one particular sector that holds large potential for investment and collaboration is Muslim fashion. Indonesia’s Muslim fashion industry is seen as a lucrative and consistently growing industry due to the fact that Indonesia holds the largest Muslim population in the world and the total domestic consumption of Muslim fashion in the country could reach up to US$6 billion.

“This condition has also made Indonesia succeed in becoming the third best performing country in developing its Muslim fashion industry in the world, after the United Arab Emirates and Turkey,” Reni said.

Adding to that, IKMs play a major role in reviving the productivity of the textiles and textile products (TPT) industry sector, despite the Covid-19’s impact on economies around the world. In the second quarter of 2021, the textiles industry managed to post a positive growth of 4.54%. In fact, the total value of textile exports have reached US$6.93 billion throughout January to July 2021.

“Our IKMs have been able to produce a variety of innovative fashion products from various raw materials, colors, techniques and designs, as displayed at the Dubai World Expo,” he added.

In order to encourage more Muslim fashion designers and IKMs to produce quality products, the Kemenperin’s Directorate General for IKMA Industries has helped organize the Modest Fashion Project (MOFP) every year. The MOFP is a forum for Muslim fashion designers to develop a more competitive industry.

“We collaborate with many fashion business experts to create a coaching program which encourages Muslim fashion designers to develop their businesses,” Reni explained.

Aside from the Muslim fashion sector, the Directorate is also placing emphasis on the cosmetics IKMs to further support the already competitive sector. Out of the 760 cosmetics enterprises in Indonesia, 95% of them are IKMs. This means that cosmetics IKMs play a big role in contributing to the national economy.

“There are many opportunities that can be exploited by IKM actors to develop the cosmetics sector, including the increasing trend of halal cosmetics, the abundance of natural resources in the country available to produce these cosmetics, the proliferation of cosmetics products for children and men, as well as the various Muslim holiday celebrations that can be used as opportunities for IKMs to boost their sales,” Reni added.

In order for the IKMs to fully take advantage of these opportunities, Reni says that the government will consistently facilitate them with various training programs on technological adaptation and development, innovation and marketing practices.

“We encourage large-scale cooperation in the cosmetics industry in partnership with the intermediate and packaging industries. Such collaborations can help IKMs who produce semi-complete goods, such as essential oils, into finished products that can be consumed by the public”.