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 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 arrangement is meant to pair BASF's ingredient and formulation science and its global research capacity with ParagonCorp's local reading of consumers and its product development experience. According to the announcement, the partners will draw on those combined strengths to explore novel cosmetic concepts built on scientific advances. The MoU does not name individual projects, product categories, budgets or timelines.
Dr. Chang Wang, vice president of business management for Personal Care, Asia Pacific at BASF, said innovation carries the most meaning when it remains close to consumers, and that merging science with a deeper grasp of changing expectations could open up new possibilities and make personal care more relevant.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company — which describes itself as a "Purposeful Beauty Tech Company" — holds that innovation must begin with an understanding of consumer needs and then keep developing through science-based approaches.
Because the MoU is non-binding, it does not commit either company to specific projects or investment; the stated purpose is to establish a working framework for joint R&D.
Export growth and SME support
The agreement comes as Indonesia's cosmetics industry draws attention from local companies and the government. In September the Ministry of Industry reported that 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-sized enterprises in personal care to strengthen their competitiveness and open more doors to international markets; SMEs account for the bulk of the domestic cosmetics industry.
Domestic product development is expanding as well. Earlier this year Wardah, a ParagonCorp subsidiary, launched Wardah Skinverse 2026: Skin Longevity Clinic, which was described at launch as Indonesia's first holistic skin longevity clinic.
Halal rules tighten
As the sector strengthens, the government is tightening its regulatory framework. Indonesia 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, a move intended to give the halal ecosystem time to prepare and to grant businesses somewhat more certainty.