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. The announcement did not specify financial terms or a timetable for individual projects.
Pairing global science with local consumer insight
The partnership is intended to combine BASF's capabilities in ingredient and formulation science and its global research with ParagonCorp's understanding of local consumers and its product development work. The companies said they will use these combined strengths to explore novel cosmetic concepts grounded in scientific advances.
"Innovation is most meaningful when it stays close to the consumers," said Dr. Chang Wang, vice president of business management, Personal Care, Asia Pacific at BASF. He added that 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, said the company sees itself as a "Purposeful Beauty Tech Company" and believes innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Momentum across Indonesia's cosmetics sector
The MoU arrives as Indonesia's cosmetics industry attracts attention from local players and the government alike. 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, aiming to strengthen their competitiveness and open more doors to international markets. SMEs make up the bulk of the domestic cosmetics industry.
Domestic offerings are expanding as well. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, described at its launch as Indonesia's first holistic skin longevity clinic.
Halal requirements tighten
As the sector strengthens, the government is tightening its regulatory framework. 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. The extension was intended to give the halal ecosystem time to prepare and to grant businesses a measure of certainty.