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.
According to the companies, ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF's Personal Care business.
What the framework covers
The intended collaboration would combine BASF's capabilities in ingredient and formulation science and its global research with ParagonCorp's local understanding of consumers and its product development work. The two sides said they would draw on those combined strengths to explore novel cosmetic concepts founded on scientific advances. No specific product categories, timelines, financial terms or exclusivity commitments were disclosed.
Dr. Chang Wang, vice president of business management for Personal Care, Asia Pacific at BASF, framed the agreement around proximity to consumers, saying innovation is most meaningful when it stays close to them and that pairing science with a deeper understanding of evolving expectations could unlock new possibilities for personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, described the company as a purposeful beauty tech company and said innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Domestic industry momentum
The MoU comes amid wider momentum in Indonesia's cosmetics industry, which is drawing 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 also 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.
Product activity is expanding alongside exports. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, which the company called Indonesia's first holistic skin longevity clinic.
Halal compliance timeline
Regulation is tightening as the sector strengthens. 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 meant to give the halal ecosystem time to prepare and to grant businesses a bit more certainty.