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, and establishes a framework for the two companies to work together on research and development.
According to the companies, ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF's Personal Care business. The arrangement is intended to combine BASF's capabilities in ingredient and formulation science and its global research with ParagonCorp's understanding of local consumers and its product development work. The two sides said they will draw on those combined strengths to explore new cosmetic concepts grounded in scientific advances.
What the two companies said
Dr. Chang Wang, vice president of business management for Personal Care, Asia Pacific at BASF, said innovation carries the most meaning when it stays close to consumers, and that pairing science with a deeper understanding of changing expectations could open up possibilities that make personal care more relevant.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, described the company as a purpose-driven beauty technology company and said innovation must begin with an understanding of consumer needs and then keep developing through science-based approaches.
Industry momentum behind the agreement
The MoU comes as Indonesia's cosmetics sector attracts attention from local players and the government. 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-sized enterprises in personal care, 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, Wardah, a ParagonCorp subsidiary, launched Wardah Skinverse 2026: Skin Longevity Clinic, described at its launch as Indonesia's first holistic skin longevity clinic.
Regulatory tightening alongside growth
As the sector strengthens, 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, an extension intended to give the halal ecosystem time to prepare and to grant businesses somewhat more certainty.
The MoU does not commit either company to specific products, timelines or investment levels; both framed it as a basis for exploring collaboration possibilities.