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 it establishes 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 companies plan to combine BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development. They will use those combined strengths to explore novel cosmetic concepts founded on scientific advances. Because the agreement is non-binding, it sets out a basis for exploration rather than a completed product, supply or commercialization commitment.
Executive views
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. He said that combining science with a deeper understanding of evolving expectations can unlock new possibilities that bring greater relevance to personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company sees itself as a purposeful beauty tech company. She added that innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Industry momentum
The agreement comes during wider momentum in Indonesia’s cosmetics industry. 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, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic. The launch was described as Indonesia’s first holistic skin longevity clinic.
Regulatory context
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. 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.
Against that backdrop, the BASF and ParagonCorp MoU is limited to exploring collaboration possibilities. Any outcomes would depend on further work under the framework. The agreement signals interest in linking global ingredient science with local consumer insight in a market where exports, SME activity and halal compliance are shaping priorities.