BASF and ParagonCorp, described as Indonesia’s largest personal care company, have signed a memorandum of understanding to explore collaboration possibilities for 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 proposed collaboration combines BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development. According to the companies, the combined strengths will be used to explore novel cosmetic concepts founded on scientific advances. The arrangement is intended to link technical capability from a global ingredients supplier with market-facing product development from a local beauty company.
Consumer insight and science
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 bring greater relevance to personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company is a “Purposeful Beauty Tech Company” and believes innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Market momentum
The agreement comes amid wider momentum in Indonesia’s cosmetics industry, which is attracting 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 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 products are also expanding. 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 requirements
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. 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 to grant businesses a bit more certainty.
For BASF and ParagonCorp, the MoU establishes a framework for exploration rather than a completed product launch. Its focus is on pairing ingredient and formulation science with local consumer understanding as Indonesia’s beauty market expands and its compliance requirements evolve.