ParagonCorp, Indonesia’s largest personal care company, and BASF 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 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, according to the announcement. The companies said the agreement brings together BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development.
Under that framework, the two companies will explore novel cosmetic concepts founded on scientific advances. The companies framed the collaboration as an exploration of possibilities.
Consumer insight and science
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. Wang 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, said the company sees itself as a “Purposeful Beauty Tech Company.” Chairunnisa said innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
The agreement places research and local market knowledge at the center of the proposed collaboration. BASF brings global ingredient and formulation expertise, while ParagonCorp brings consumer understanding and product development experience in Indonesia.
Wider Indonesian momentum
The MoU comes amid broader activity 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 also 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, according to the report.
Domestic product development is expanding as well. 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 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.
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 grant businesses more certainty.
The agreement is an exploratory framework. It comes as Indonesia’s cosmetics market grows in export value, broadens domestic offerings and adapts to a more demanding halal compliance timetable.