BASF and ParagonCorp, described as Indonesia’s largest personal care company, have signed a memorandum of understanding to examine possible collaboration on science-backed cosmetic innovation.
The agreement is non-binding and non-exclusive. It establishes a framework for joint research and development work. ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business, according to the companies.
Combining research and local insight
The proposed collaboration would draw on BASF’s ingredient and formulation science and its global research network, alongside ParagonCorp’s understanding of local consumers and its product development experience. The companies said they would use those combined strengths to explore new cosmetic concepts grounded in scientific advances.
Under the arrangement, BASF’s role would center on ingredients, formulation know-how and research, while ParagonCorp would contribute market knowledge and product development capabilities. The companies would seek cosmetic concepts that connect scientific progress with consumer expectations in Indonesia.
Dr. Chang Wang, vice president of business management for Personal Care in Asia Pacific at BASF, said innovation is most meaningful when it remains close to consumers. He said combining science with a deeper understanding of changing expectations could open new possibilities for personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company approaches innovation from consumer needs and seeks to develop it through science-based methods. ParagonCorp describes itself as a “Purposeful Beauty Tech Company.”
Growth and regulatory change in Indonesia
The agreement comes amid wider momentum in Indonesia’s cosmetics industry. In September, the Ministry of Industry reported that cosmetic exports rose 13.7% to US$473.8 million in 2025, from US$416.8 million the year before.
The ministry has increased support for small and medium-sized enterprises in personal care to improve their competitiveness and help them reach international markets. SMEs account for the bulk of the domestic cosmetics industry, according to the report.
Domestic product development is also expanding. Earlier this year, Wardah, a ParagonCorp subsidiary, launched Wardah Skinverse 2026: Skin Longevity Clinic, described as Indonesia’s first holistic skin longevity clinic.
At the same time, the government is tightening regulation. Indonesia is introducing mandatory halal requirements under which all cosmetics must carry halal certification or a clear non-halal label. The compliance deadline was extended by two years to October 2028 to give the halal ecosystem time to prepare and to provide businesses with more certainty.
For BASF and ParagonCorp, the MoU remains an exploratory framework rather than a committed product plan. Any future work would need to translate combined scientific and consumer insight into cosmetic concepts that meet local expectations and the evolving regulatory environment.