BASF and ParagonCorp, described as Indonesia’s largest personal care company, have signed a non-binding, non-exclusive memorandum of understanding to explore collaboration on science-backed cosmetic innovation. The agreement establishes 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 companies said. The partners plan to combine BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development. They will use those combined strengths to explore novel cosmetic concepts founded on scientific advances.
Complementary strengths
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. Combining science with a deeper understanding of evolving expectations can unlock new possibilities that make personal care more relevant, he said. He added that this approach can connect global scientific capability with local consumer expectations.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company, which describes itself as a Purposeful Beauty Tech Company, believes innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Market momentum
The agreement comes as Indonesia’s cosmetics industry attracts attention from local players and the government. In September, the Ministry of Industry reported that cosmetic exports rose 13.7% to US$473.8 million in 2025 from US$416.8 million the year before. The ministry has stepped up support for small and medium enterprises in personal care to strengthen their competitiveness and open more doors to international markets. SMEs make up the bulk of the domestic cosmetics industry, according to the report.
Domestic products are expanding too. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, described as Indonesia’s first holistic skin longevity clinic.
Halal rules
With the cosmetics sector strengthening, 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 rule allows a clear non-halal label as an alternative to certification. Last month, 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 give businesses more certainty.
The MoU between BASF and ParagonCorp is a collaboration framework for exploring science-led cosmetic concepts. It sits alongside a wider policy and market backdrop of export growth, support for smaller manufacturers, new domestic product development and a longer halal compliance window. Its immediate scope is exploration, with scientific advances and consumer understanding as the stated foundations.