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 rather than a completed commercial commitment.
ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business, according to the announcement. The arrangement is intended to combine BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development. The two sides said they will use those combined strengths to explore novel cosmetic concepts founded on scientific advances.
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 combining science with a deeper understanding of evolving expectations could unlock possibilities that bring greater relevance to personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, described the company as a Purposeful Beauty Tech Company. She said innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
The MoU comes amid wider momentum in Indonesia’s cosmetics industry, which is drawing 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, 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, aiming to strengthen their competitiveness and open more doors to international markets. SMEs make up the bulk of the domestic cosmetics industry.
Domestic product development is also expanding. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, which was described as Indonesia’s first holistic skin longevity clinic.
At the same time, the government is tightening the regulatory framework. Indonesia 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.
For BASF and ParagonCorp, the MoU is limited to exploring collaboration possibilities. It does not by itself indicate that specific products, ingredients or formulations have been developed or approved. Its significance lies in linking global ingredient and formulation expertise with local consumer knowledge while the Indonesian market expands and its compliance requirements evolve.