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 the two companies to work together on research and development.
ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF's Personal Care business, according to the announcement. The companies intend to combine BASF's capabilities in ingredient and formulation science and global research with ParagonCorp's local understanding of consumers and product development.
Scope of the agreement
The companies will use their combined strengths to explore novel cosmetic concepts founded on scientific advances. The source did not disclose financial terms, timelines, specific product categories or commercialization targets. Because the agreement is explicitly non-binding and non-exclusive, it does not itself create an exclusive supply arrangement or a binding product-development commitment.
Dr. Chang Wang, VP 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 evolving expectations can unlock new possibilities that bring greater relevance to personal care.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, described the company as a Purposeful Beauty Tech Company. She said innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Indonesia's cosmetics momentum
The MoU comes amid broader momentum in Indonesia's cosmetics industry. 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 to strengthen their competitiveness and open more doors to international markets. SMEs make up the bulk of the domestic cosmetics industry.
Domestic offerings are also expanding. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, described as Indonesia's first holistic skin longevity clinic.
Halal compliance timetable
As the cosmetics 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.
The government extended the compliance deadline last month by two years to October 2028. The extension was intended to give the halal ecosystem time to prepare and to grant businesses a bit more certainty.
For BASF and ParagonCorp, the MoU is an exploratory R&D framework rather than a launched product or announced commercial program. Its significance will depend on whether the companies convert it into specific projects, but the agreement places scientific formulation and local consumer understanding at the center of their proposed collaboration as Indonesia's cosmetics industry expands exports and adjusts to halal rules.