“ Halal-certified products have gained traction in overseas markets as consumers identify these products as being deemed healthy and safe for use. ”
I founded the company because I wanted Indonesian women to have access to beauty products that are of high-quality and at a reasonable price. As the second largest producer of botanical goods, Indonesia’s potential in this regard inspired me to create a product which utilises these raw materials as an active ingredient. Tri Putri Ayu has since manufactured a range of products including body wash, body scrub, hair serum, body mist, shampoos, day and night cream as well as hand & body lotions. These products are sold under our company’s four brands – Thai, Jinzu, Obali, and MX – that are tailored for different market segments. We have the annual capacity to produce 280 tonnes of opaque soap, 500 tonnes of body wash, 270 tonnes of body scrubs, 625 tonnes of hand & body lotions, 10 tonnes of hair serum, 6.2 tonnes of day & night cream, and 270 tonnes of shampoo. We are able to attain 4 – 5 billion IDR monthly through our sales that is supported by 117 staff members. In 2017, we will strive to increase our production capacity by three to four-fold while also moving forward under as PT Prioritas Jaya Indonesia – a new step from our current PD status.
As an innovation-driven company, we will continue to explore various applications of botanical ingredients for the expansion of our product portfolio. There are currently 350,000 species of plants that are safe to be utilised yet Indonesia has only been able to utilise 3,000 types thus presenting immense room for future development in the beauty and cosmetics industry. Our products have reached export markets such as Brunei and Malaysia, however, our market segment remains predominantly focused on Indonesian consumers. With cosmetic product sales amounting to 64.3 trillion IDR in 2015, we are confident that our company’s focus on the domestic market is the ideal strategy.
Moving forward, we are looking to take advantage of the national e-commerce industry’s growth taking into consideration that industry’s performance. Other measures include improving our packaging design so as to better attract consumers hence our team are obligated to remain well-aware of the dynamic trends.
As the largest Muslim-populated country in the world, Tri Putri Ayu has long taken the necessary steps in ensuring that our products are all Halal-certified. I support this government regulation given the country’s Muslim-majority population hence the government must look to safeguard these consumers. However, many small and medium enterprises (SMEs) may not be able to abide by this law due to the amount of paperwork that is required in addition to the lack of information regarding the process of obtaining the Halal certification. Based on our previous experience, Halal-certified products have gained traction in overseas markets as consumers identify these products as being deemed healthy and safe for use.
The cosmetics industry is only poised for further growth in 2017 because the current administration has forged ahead with infrastructure projects and tackling under-the-table money (‘pungli’) hence this should reduce operation costs for businesses. Furthermore, the Joko Widodo administration has sought-after numerous solutions so as to better promote Indonesian products to the international community in particular products from small and medium enterprises. Overall, we expect the cosmetics industry to incur two-digit growth next year.
Nonetheless, there are a number of challenges that must be dealt with going forward. For cosmetics companies, the limited access to raw materials must be sorted out so as to diversify the product range made available to consumers. Additional concerns particularly for SMEs are related to access for promotional and marketing activities that often require a large amount of money. In spite of the ASEAN Economic Community, local companies that have the capital to promote their goods on television as well as other communication channels are mainly large-scale firms hence bringing about a disadvantage to local SMEs.
Indonesia’s vast land mass and large population serves as additional advantages to the country that has made the country highly-attractive for our regional neighbours. In understanding this, Indonesia must work towards becoming a supply chain for the ASEAN region. To realise this goal, the government has to find solutions so as to increase the number of local entrepreneurs given the country’s low entrepreneurship ratio of 1 out of 5 individuals. In addition, the government must issue regulations which support stakeholders in our industry. If the government is able to fulfil these aspects, I am confident that Indonesia would have the capacity to spearhead the ASEAN Economic Community. Given that cosmetics companies in the ASEAN are bounded under the ASEAN Cosmetic Directive, I will utilise this opportunity to widen our regional presence in the future.
While we remain open to partnering with overseas firms, we emphasise the importance of mutual cooperation in order to have a successful partnership. Specifically for Tri Putri Ayu, we are very interested in exporting our products to target markets that are considered of high-value to our industry such as France, the US, the UK, and the Middle East region.
Indonesia has many potential and the next step forward is to better promote the country in order to drive higher levels of investment as well as to establish a strong international presence. We encourage companies to partner with Tri Putri Ayu because we have the capacity and capabilities to support their business operations.