BASF and ParagonCorp, described as Indonesia’s largest personal care company, have signed a non-binding and non-exclusive memorandum of understanding to explore collaboration on science-backed cosmetic innovation. ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business.
The framework is intended to combine BASF’s ingredient and formulation science and global research with ParagonCorp’s understanding of local consumers and product development. The companies said they will use those combined strengths to explore novel cosmetic concepts founded on scientific advances. The MoU does not disclose specific products, development timelines or commercial commitments.
How the companies frame the collaboration
Dr. Chang Wang, VP 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 make personal care more relevant.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company sees innovation as beginning with consumer needs and continuing to evolve through science-based approaches. She described ParagonCorp as a “Purposeful Beauty Tech Company.”
Indonesia’s cosmetics market momentum
The agreement comes as Indonesia’s cosmetics sector draws attention from local companies and the government. The Ministry of Industry reported that cosmetic exports rose 13.7% to US$473.8 million in 2025 from US$416.8 million a year earlier. The ministry has increased support for small and medium enterprises in personal care, which make up most of the domestic cosmetics industry, to improve their competitiveness and access international markets.
Domestic product activity is also expanding. ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, billed as Indonesia’s first holistic skin longevity clinic.
Halal rules add a compliance dimension
As the sector strengthens, the Indonesian government is tightening its regulatory framework. It 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, a move intended to give the halal ecosystem time to prepare and provide businesses with more certainty.
For BASF and ParagonCorp, the MoU creates a collaborative framework rather than a binding product program. Any joint work would still need defined projects, R&D outcomes and commercialization decisions, while product planning would sit alongside Indonesia’s export ambitions and the extended halal compliance timetable.