BASF and ParagonCorp, described as Indonesia’s largest personal care company, have signed a non-binding, non-exclusive memorandum of understanding to explore collaboration on science-backed cosmetic innovation. The agreement creates a framework for joint research and development, rather than a completed product launch or a binding supply commitment. ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business.
The proposed collaboration would combine BASF’s capabilities in ingredient and formulation science and its global research with ParagonCorp’s local understanding of consumers and product development. The companies said they would use those combined strengths to explore novel cosmetic concepts founded on scientific advances. The announcement did not specify scope, timelines or commercial terms.
How the companies frame the agreement
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. He said combining science with a deeper understanding of changing expectations could open new possibilities and make personal care more relevant. Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company believes innovation must begin with consumer needs and continue to evolve through science-based approaches. ParagonCorp describes itself as a purposeful beauty technology company.
Indonesia’s cosmetics sector is expanding
The agreement comes as Indonesia’s cosmetics industry draws attention from local companies and the government. The Ministry of Industry reported in September that cosmetics exports rose 13.7% to US$473.8 million in 2025, from US$416.8 million the year before. The ministry has also increased support for small and medium-sized enterprises in personal care, aiming to improve their competitiveness and help them reach international markets. SMEs make up the bulk of the domestic cosmetics industry.
Domestic product development is also broadening. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, described as Indonesia’s first holistic skin longevity clinic. The launch adds to the domestic product activity described alongside the MoU.
Halal rules add a compliance deadline
As the sector strengthens, the Indonesian government is tightening regulation. It is rolling out mandatory halal requirements under which all cosmetics must carry halal certification or a clear non-halal label. The government has extended the compliance deadline by two years to October 2028. The extension was intended to give the halal ecosystem time to prepare and to provide businesses with more certainty.
For BASF and ParagonCorp, the MoU is an exploratory step. It does not announce a product, a supply agreement or a commercial launch. The agreement signals a shared interest in linking global ingredient science with local consumer insight in a market where exports are rising and compliance expectations are becoming more explicit.