BASF's Personal Care business 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. According to the companies, ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF's Personal Care business.
Combining global science with local insight
The framework pairs BASF's capabilities in ingredient and formulation science and its global research organisation with ParagonCorp's local understanding of consumers and its product development experience. The stated aim is to explore new cosmetic concepts founded on scientific advances.
Dr. Chang Wang, vice president of business management for Personal Care in Asia Pacific at BASF, said innovation is most meaningful when it stays close to consumers, adding that combining science with a deeper understanding of evolving expectations can unlock new possibilities 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.
Market momentum behind the deal
The MoU comes as Indonesia's cosmetics industry gains attention from domestic players and the government. In September, 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, which make up the bulk of the domestic cosmetics industry, to strengthen their competitiveness and open more doors to international markets.
Domestic product development is widening too. Earlier this year, Wardah, a ParagonCorp subsidiary, launched Wardah Skinverse 2026: Skin Longevity Clinic, described at launch as Indonesia's first holistic skin longevity clinic.
Regulation tightens in parallel
As the sector grows, the government is tightening its regulatory framework. Indonesia 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, an extension intended to give the halal ecosystem time to prepare and to grant businesses more certainty.
For suppliers and brands, the arrangement points to an exploratory phase: the MoU sets out intentions and areas of cooperation rather than committed projects, volumes or launches, and the companies did not attach specific timelines or commercial terms to the agreement in their announcement.