BASF's Personal Care business 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 sets up a framework for joint research and development rather than a committed product programme. According to the companies, ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF's Personal Care unit.
Pairing global science with local consumer understanding
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 experience. The two sides said they will use these combined strengths to explore novel cosmetic concepts founded 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 stays close to consumers, and that merging science with a deeper understanding of evolving expectations can unlock new possibilities with greater relevance for 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" and believes innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Momentum across Indonesia's cosmetics sector
The agreement comes as Indonesia's cosmetics industry 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 stepped up support for small and medium enterprises in the personal care sector, aiming 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, which the company called Indonesia's first holistic skin longevity clinic.
Halal compliance deadline pushed to 2028
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. The extension was meant to give the halal ecosystem time to prepare and to grant businesses a measure of certainty.