BASF 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 establishes a framework for joint 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.
The proposed collaboration would combine 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 would use these combined strengths to explore novel cosmetic concepts based on scientific advances. The MoU does not commit either party to a specific product, investment or commercial launch.
Research focus and executive comment
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 for personal care. Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company's approach as a Purposeful Beauty Tech Company begins with consumer needs and continues through science-based methods.
The agreement is limited to exploring collaboration possibilities. It does not disclose timelines, financial terms, specific ingredients, product categories or performance claims. Any future work would therefore depend on further agreements between the companies.
Indonesia's cosmetic sector context
The MoU comes as Indonesia's cosmetics industry draws attention from local companies and the government. 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 also increased support for small and medium enterprises in personal care, aiming to strengthen their competitiveness and open more doors to international markets. SMEs make up the bulk of the domestic cosmetics industry, according to the article.
Domestic product development is also expanding. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, which was described as Indonesia's first holistic skin longevity clinic. The launch was cited as an example of expanding domestic offerings.
Regulatory backdrop
As the sector grows, 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 intended to give the halal ecosystem time to prepare and to provide businesses with more certainty.
For BASF and ParagonCorp, the MoU is a framework rather than a completed project. Its significance lies in the intended combination of international ingredient science and local consumer knowledge, set against a market that is expanding exports and adjusting to stricter halal rules. The companies have not said when the first collaborative concepts might emerge or how they would be commercialised.