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 work.
ParagonCorp is the first beauty company in Indonesia to sign such an MoU with BASF’s Personal Care business. The arrangement is intended to bring together BASF’s expertise in ingredients, formulation science and global research with ParagonCorp’s understanding of local consumers and product development.
The two companies said they will use those combined strengths to explore new cosmetic concepts grounded in scientific advances. The stated aim is to investigate concepts rather than confirm a product launch.
Executive views
Dr. Chang Wang, vice president of business management for Personal Care, Asia Pacific at BASF, said innovation carries the most meaning when it stays close to consumers. He said pairing science with a deeper understanding of evolving expectations could open new possibilities that make personal care more relevant.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company approaches innovation from consumer needs and then develops it through science-based methods. Her description aligns with the MoU’s stated aim of linking local market insight with ingredient and formulation research.
Market context
The agreement comes as Indonesia’s cosmetics sector 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, compared with US$416.8 million the year before.
The ministry has also stepped up support for small and medium enterprises in personal care, aiming to improve their competitiveness and help them reach international markets. SMEs account for the bulk of the domestic cosmetics industry, according to the report.
Domestic product development is expanding as well. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, which the company described as Indonesia’s first holistic skin longevity clinic.
Regulatory backdrop
Alongside the sector’s growth, the Indonesian government is tightening its regulatory framework. It is introducing mandatory halal requirements under which all cosmetics must carry halal certification or a clear non-halal label.
The government has extended the compliance deadline by two years to October 2028. The extension is meant to give the halal ecosystem more time to prepare and to provide businesses with greater certainty.
For BASF and ParagonCorp, the MoU creates a formal channel for exploring science-led concepts in a market where consumer understanding, export growth and compliance demands are all changing. Because the agreement is exploratory and non-exclusive, any commercial outcome would depend on further development by the companies.