BASF and ParagonCorp, 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 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, according to the companies. No specific project areas, timelines or financial terms were disclosed.
The arrangement brings together BASF's capabilities in ingredient and formulation science and its global research with ParagonCorp's local understanding of consumers and product development. The two sides said they will use those combined strengths to explore novel cosmetic concepts founded on scientific advances.
"Innovation is most meaningful when it stays close to the consumers," said Dr. Chang Wang, vice president of business management for Personal Care, Asia Pacific at BASF. He said that combining science with a deeper understanding of evolving expectations could unlock new possibilities that bring greater relevance to personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company, which describes itself as a Purposeful Beauty Tech Company, believes innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Because the agreement is non-binding and non-exclusive, it does not commit either company to particular projects, volumes or investment.
Export growth and SME support
The signing comes as Indonesia's cosmetics industry draws 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 stepped up support for small and medium-sized 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 launches and halal rules
Domestic offerings are also expanding. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, which was described at its launch as Indonesia's first holistic skin longevity clinic.
Regulation is tightening at the same time. Indonesia 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 a bit more certainty.