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 establishes a framework for joint research and development.
ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business. The companies intend to combine BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development. Together, they will explore novel cosmetic concepts founded on scientific advances.
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 that combining science with a deeper understanding of evolving expectations can unlock new possibilities that make personal care more relevant.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, described the company as a Purposeful Beauty Tech Company. She said innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Industry momentum
The agreement comes during broader momentum in Indonesia’s cosmetics industry, which is drawing attention from local players and the government. In September, the Ministry of Industry reported that the country’s cosmetic exports rose 13.7% to US$473.8 million in 2025, up from US$416.8 million the year before.
The ministry has also stepped up support for small and medium enterprises in the personal care sector, 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, which was described as Indonesia’s first holistic skin longevity clinic.
Halal compliance
As the cosmetics sector strengthens, the Indonesian government is tightening its regulatory framework. The country is rolling out mandatory halal requirements under which all cosmetics must carry halal certification or a clear non-halal label.
The government extended the compliance deadline by two years to October 2028. The extension was intended to give the halal ecosystem time to prepare and to grant businesses a bit more certainty.
The BASF and ParagonCorp MoU sets out a framework for exploring R&D collaboration. It is non-binding and non-exclusive, and does not announce specific products, launch timelines or commercial terms.