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 work.
ParagonCorp is the first beauty company in Indonesia to sign such an MoU with BASF’s Personal Care business. The arrangement is intended to bring together BASF’s ingredient and formulation science and global research capabilities with ParagonCorp’s understanding of local consumers and product development.
Under the framework, the two companies will examine new cosmetic concepts based on scientific advances. Because the MoU is non-binding, it sets out an intent to explore where their respective strengths can be combined rather than a committed product programme.
Executive views
Dr. Chang Wang, vice president of business management for Personal Care in Asia Pacific at BASF, said innovation is most meaningful when it remains close to consumers. He said combining science with a deeper understanding of changing expectations could open 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” and said innovation should start with consumer needs and continue to develop through science-based approaches.
Market momentum
The agreement arrives amid broader activity in Indonesia’s cosmetics sector. In September, the Ministry of Industry reported that cosmetic exports rose 13.7% to US$473.8 million in 2025, compared with US$416.8 million the year before.
The ministry has also increased support for small and medium enterprises in personal care, aiming to strengthen their competitiveness and help them reach international markets. SMEs account for the bulk of the domestic cosmetics industry.
Domestic product development is 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 sector grows, the Indonesian government is tightening its regulatory framework. The country is introducing 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. The extension was intended to give the halal ecosystem more time to prepare and to provide businesses with greater certainty.
For BASF and ParagonCorp, the MoU is an exploratory step rather than a completed product programme. Its significance lies in linking international ingredient and formulation expertise with local consumer and product-development knowledge while Indonesia’s cosmetics market expands and its compliance requirements evolve.