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 sets up a framework for the two companies to work together on research and development.
According to the companies, ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF's Personal Care business.
As a non-binding and non-exclusive arrangement, the MoU does not by itself commit either party to specific products, volumes or deadlines; the companies presented it as a structure for exploring joint work.
Combining laboratory science with local consumer knowledge
The collaboration is intended to bring together 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 two sides say they will draw on these combined strengths to explore novel cosmetic concepts founded on scientific advances.
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 could unlock new possibilities with greater relevance for 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 Company, believes innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Export growth and SME support
The agreement comes amid wider momentum in Indonesia's cosmetics industry, which is drawing attention from local players and the government. 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, which the company called Indonesia's first holistic skin longevity clinic.
Halal rules push compliance deadline to 2028
With the sector strengthening, 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 grant businesses a measure of additional certainty.