BASF and ParagonCorp, Indonesia’s largest personal care company, have signed a memorandum of understanding to explore possible collaboration on science-backed cosmetic innovation. The agreement is non-binding and non-exclusive and creates a framework for joint research and development work between the two companies. ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business.
The arrangement brings together BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s 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. Because the MoU is non-binding, it does not commit either company to a product launch or a commercial rollout.
The agreement focuses on exploring collaboration possibilities rather than announcing a defined product or launch. The companies presented the agreement as a way to connect global ingredient and formulation research with local consumer knowledge. The announced scope is limited to exploring collaboration possibilities through R&D, and the MoU does not by itself create a commercial program.
Consumer-led innovation
Dr. Chang Wang, vice president of business management for Personal Care in 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 new possibilities and bring greater relevance to personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company sees itself as a Purposeful Beauty Tech Company. She said innovation should begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Industry momentum
The agreement comes as Indonesia’s cosmetics industry draws 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 year before.
The ministry has increased support for small and medium-sized enterprises in the personal care sector, aiming to strengthen their competitiveness and open more doors to international markets. SMEs account for the bulk of the domestic cosmetics industry.
Domestic offerings are also expanding. ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, which the company called Indonesia’s first holistic skin longevity clinic.
The government is also tightening its regulatory framework. Mandatory halal requirements mean all cosmetics must carry halal certification or a clear non-halal label. The compliance deadline was extended by two years to October 2028, a move intended to give the halal ecosystem time to prepare and provide businesses with more certainty.