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 companies intend to combine BASF’s ingredient and formulation science and global research capabilities with ParagonCorp’s understanding of local consumers and product development. Their stated aim is to explore novel cosmetic concepts grounded in scientific advances.
Leadership views
Dr. Chang Wang, BASF’s vice president of business management for Personal Care in Asia Pacific, said innovation has the most meaning when it remains close to consumers. He said combining science with a deeper understanding of changing expectations could open new possibilities for personal care and make the category more relevant. Dr. Sari Chairunnisa, ParagonCorp’s deputy CEO and chief R&D officer, said the company’s approach as a purposeful beauty technology company begins with consumer needs and develops through science-based methods.
The MoU does not itself announce products or completed innovations. It sets out an intent to study and develop concepts through research and development cooperation, with the companies positioning scientific capability and local market knowledge as complementary inputs. The agreement therefore signals an intent to cooperate rather than a binding commercial commitment.
Indonesia’s cosmetics momentum
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, from US$416.8 million the year before.
The ministry has increased support for small and medium-sized enterprises in personal care 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 also expanding. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, described as Indonesia’s first holistic skin longevity clinic.
Halal compliance timetable
As the sector expands, the Indonesian government is tightening its regulatory framework. The country is introducing 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 more time to prepare and to provide businesses with greater certainty.