BASF and ParagonCorp have signed a memorandum of understanding to explore collaboration on science-backed cosmetic innovation. ParagonCorp is described as Indonesia’s largest personal care company. The agreement is non-binding and non-exclusive, and it sets up a framework for joint research and development. It also makes ParagonCorp the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business.
Under the framework, BASF brings capabilities in ingredient and formulation science and global research, while ParagonCorp contributes its local understanding of consumers and product development. The companies said they will use these combined strengths to explore novel cosmetic concepts founded on scientific advances. The MoU does not announce specific products, launch dates, investment amounts or binding commercial commitments.
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 can unlock new possibilities that make personal care more relevant.
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.
Market momentum
The agreement comes as Indonesia’s cosmetics industry attracts attention from local players 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 previous year.
The ministry has stepped up support for small and medium enterprises in the personal care sector. The aim is 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 offerings are 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
With the cosmetic sector strengthening, 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.
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 grant businesses more certainty.
For BASF and ParagonCorp, the MoU is an exploratory step rather than a completed product programme. It signals an intent to combine international ingredient expertise with local market knowledge while export conditions and halal rules continue to evolve. Because the agreement is non-binding and non-exclusive, any commercial outcomes would depend on separate arrangements between the companies.