BASF and ParagonCorp, described as Indonesia's largest personal care company, have signed a memorandum of understanding to explore cooperation on science-backed cosmetic innovation.
The agreement is non-binding and non-exclusive, and sets up 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.
What the framework is meant to combine
The companies intend to bring together BASF's capabilities in ingredient and formulation science and its global research with ParagonCorp's local understanding of consumers and product development. Those combined strengths would be used to explore novel cosmetic concepts founded on scientific advances. No specific product categories, timelines or investment figures were disclosed.
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, and that combining science with a deeper understanding of evolving expectations can open new possibilities for personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, described the company as a purposeful beauty tech company and said innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Why Indonesia's cosmetics sector is drawing attention
The MoU comes as Indonesia's cosmetics industry gains momentum among 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 stepped up support for small and medium enterprises in the personal care sector to strengthen their competitiveness and open more doors to international markets; SMEs make up the bulk of the domestic cosmetics industry.
Domestic offerings are expanding as well. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, presented at launch as Indonesia's first holistic skin longevity clinic.
Halal requirements add a compliance layer
Alongside that growth, the government is tightening its regulatory framework. Indonesia is rolling out mandatory halal requirements under which all cosmetics must carry halal certification or a clear non-halal label. The government has since 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.