BASF and ParagonCorp have signed a memorandum of understanding to explore collaboration on science-backed cosmetic innovation, with ParagonCorp described as Indonesia’s largest personal care company. The agreement is non-binding and non-exclusive, establishing 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.
The partners intend to combine BASF’s ingredient and formulation science and global research capabilities with ParagonCorp’s understanding of local consumers and product development. The companies said they will use those combined strengths to explore new cosmetic concepts grounded in scientific advances. The MoU provides the framework for that exploratory work.
Executive views
Dr. Chang Wang, vice president of business management for Personal Care, Asia Pacific at BASF, said innovation is most meaningful when it remains close to consumers. He said combining science with a deeper understanding of changing expectations could open possibilities that make personal care more relevant.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company, which describes itself as a Purposeful Beauty Tech Company, believes innovation must start with consumer needs and continue to develop through science-based approaches. Her remarks place consumer understanding at the beginning of the innovation process, with scientific methods used to refine it.
Market 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, aiming to strengthen 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, Wardah, a ParagonCorp subsidiary, launched Wardah Skinverse 2026: Skin Longevity Clinic. The launch was described as Indonesia’s first holistic skin longevity clinic.
Regulatory backdrop
As the sector grows, 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.
The government has extended the compliance deadline by two years to October 2028. The extension was intended to give the halal ecosystem time to prepare and to provide businesses with more certainty.
For the personal care sector, the agreement links global ingredient science with local consumer insight while Indonesia’s export growth, SME support and halal rules shape the operating environment.