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. It 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.
Combining global science with local consumer knowledge
The proposed collaboration would bring together BASF’s capabilities in ingredient and formulation science and its global research with ParagonCorp’s understanding of local consumers and its product development experience. The companies intend to use these combined strengths to explore new cosmetic concepts based on scientific advances.
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 that combining science with a deeper understanding of changing expectations could open new possibilities and make personal care more relevant.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company describes itself as a purposeful beauty technology company. She said innovation should begin with an understanding of consumer needs and continue to develop through science-based approaches.
Growth in Indonesia’s cosmetics sector
The agreement comes as Indonesia’s cosmetics industry gains momentum. In September, the Ministry of Industry reported that the country’s cosmetic exports rose 13.7% to US$473.8 million in 2025, compared with US$416.8 million the year before.
The ministry has increased support for small and medium-sized enterprises in the personal care sector, aiming to strengthen their competitiveness and improve access to 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, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, which was described as Indonesia’s first holistic skin longevity clinic.
Halal rules take shape
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.
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 provide businesses with greater certainty.
The BASF-ParagonCorp MoU is exploratory. As a non-binding, non-exclusive framework, it sets out areas for potential research and development collaboration rather than confirmed products or launches. It concerns potential collaboration between the companies, while Wardah’s Skinverse launch represents a separate product-development initiative by a ParagonCorp subsidiary.