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. ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business.
The agreement brings together BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development. The companies will use those combined strengths to explore novel cosmetic concepts founded on scientific advances. The agreement is a framework for R&D collaboration, not a completed product launch or a binding commercial commitment.
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. Combining science with a deeper understanding of evolving expectations can open new possibilities that make personal care more relevant, Wang said.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company describes itself as a Purposeful Beauty Tech Company. In that view, innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches, Chairunnisa said.
Indonesia’s cosmetics sector gains 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 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 to strengthen their competitiveness and open more doors to international markets. SMEs make up the bulk of the domestic cosmetics industry.
Domestic offerings are also expanding. Earlier this year, Wardah, a ParagonCorp subsidiary, launched Wardah Skinverse 2026: Skin Longevity Clinic. The launch was described as Indonesia’s first holistic skin longevity clinic.
Halal compliance deadline extended
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 more certainty.
Scope of the agreement
The BASF-ParagonCorp MoU focuses on exploring collaboration possibilities. It does not itself establish a new manufacturing facility, product line or regulatory approval. The agreement links BASF’s global science base with ParagonCorp’s local consumer knowledge as Indonesia’s cosmetics market expands and compliance expectations rise.