BASF and ParagonCorp, described as Indonesia’s largest personal care company, have signed a memorandum of understanding to explore collaboration on science-backed cosmetic innovation. The agreement is non-binding and non-exclusive, and it sets up a framework for the two companies to work together on research and development.
ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business. The plan brings together BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development.
The companies will use those combined strengths to explore novel cosmetic concepts founded on scientific advances. The agreement is non-binding and non-exclusive; it focuses on exploring possibilities rather than confirming launched products or proven consumer effects.
Complementary capabilities
BASF’s Personal Care business contributes expertise in ingredients and formulations, along with global research reach. ParagonCorp adds local consumer knowledge and product development experience in Indonesia. The companies said they intend to use these strengths to identify concepts that are both scientifically grounded and relevant to local expectations.
Dr. Chang Wang, vice president of business management for Personal Care, Asia Pacific at BASF, said innovation is most meaningful when it stays close to consumers. He said combining science with a deeper understanding of evolving expectations could unlock new possibilities that bring greater relevance to personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, described the company as a Purposeful Beauty Tech Company. She said innovation should begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Market and regulatory context
The agreement comes as Indonesia’s cosmetics industry gains momentum. In September, the Ministry of Industry reported that cosmetic exports rose 13.7% to US$473.8 million in 2025, up from US$416.8 million the previous year.
The ministry has also stepped up support for small and medium enterprises in personal care, aiming to strengthen their competitiveness and open more doors to international markets. SMEs make up the bulk of the domestic cosmetics industry.
Domestic offerings are expanding as well. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, described as Indonesia’s first holistic skin longevity clinic.
At the same time, the government is tightening its regulatory framework. Indonesia is rolling out mandatory halal requirements under which all cosmetics must carry halal certification or a clear non-halal label. Last month, the government extended the compliance deadline by two years to October 2028, saying the extension was meant to give the halal ecosystem time to prepare and grant businesses a bit more certainty.