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. ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business, according to the announcement. The agreement establishes a framework for the two companies to work together on research and development.
The proposed collaboration would combine BASF’s capabilities in ingredient and formulation science and its global research with ParagonCorp’s local understanding of consumers and product development. The companies said they would use those combined strengths to explore novel cosmetic concepts founded on scientific advances. The arrangement links a global ingredients and formulation supplier with a local beauty manufacturer. The MoU is non-binding and non-exclusive.
Dr. Chang Wang, vice president of business management for Personal Care, Asia Pacific at BASF, said innovation is most meaningful when it remains close to consumers. Wang said combining science with a deeper understanding of evolving expectations could unlock new possibilities and make personal care more relevant. Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company describes itself as a Purposeful Beauty Tech Company and believes innovation must begin with consumer needs and continue to develop through science-based approaches. Both executives emphasized consumer understanding alongside scientific methods.
Indonesia’s cosmetics industry has been gaining momentum. 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 figures covered 2025. The ministry has increased support for small and medium-sized 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. The agreement comes amid wider momentum in Indonesia’s cosmetics industry, which is attracting attention from local players and the government.
Domestic offerings 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. The launch adds to ParagonCorp’s local product-development activity as it pursues the MoU with BASF.
At the same time, the Indonesian government is tightening its regulatory framework for cosmetics. 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 provide businesses with a measure of certainty.