BASF and ParagonCorp, identified in the announcement 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, the companies said.
The collaboration is designed to combine BASF's capabilities in ingredient and formulation science and its global research with ParagonCorp's local understanding of consumers and its product development work. The companies will use these combined strengths to explore novel cosmetic concepts founded on scientific advances. The announcement did not specify product categories, development timelines or commercial targets.
Consumer understanding placed at the centre
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 combining science with a deeper understanding of evolving expectations can unlock possibilities that are more relevant 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 business, believes innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Indonesia's cosmetics sector builds momentum
The partnership comes as Indonesia's cosmetics industry gains wider momentum. In its September update, the Ministry of Industry reported that 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 activity is expanding as well. Earlier this year, Wardah, a ParagonCorp subsidiary, launched Wardah Skinverse 2026: Skin Longevity Clinic, which the company called Indonesia's first holistic skin longevity clinic.
Halal compliance deadline pushed to 2028
Alongside the sector's expansion, 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. In a recent extension, the government pushed the compliance deadline out by two years to October 2028. The extension was intended to give the halal ecosystem time to prepare and to grant businesses a measure of certainty.
The MoU is exploratory in nature: it establishes a framework for research and development collaboration rather than committing either party to specific products, volumes or commercial targets. The announcement did not detail how concepts developed under the framework would be taken to market.