BASF and ParagonCorp have signed a memorandum of understanding to explore collaboration on science-backed cosmetic innovation in Indonesia. 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.
The partners intend to combine BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development. They will use those combined strengths to explore novel cosmetic concepts founded on scientific advances. The announcement did not specify products, investments or launch timelines.
Dr. Chang Wang, VP of business management, 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, said the company believes innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches. ParagonCorp describes itself as a Purposeful Beauty Tech Company.
Industry momentum
The agreement comes as Indonesia’s cosmetics industry attracts attention from local companies and the government. In September, the Ministry of Industry reported that Indonesia’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 increased support for small and medium enterprises in personal care to strengthen their competitiveness and open more doors to international markets. SMEs make up the bulk of the domestic cosmetics industry, according to the report.
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.
Regulatory backdrop
The Indonesian government is tightening its regulatory framework as the sector strengthens. 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 by two years to October 2028. The extension was intended to give the halal ecosystem time to prepare and to grant businesses more certainty.
Against that backdrop, the BASF-ParagonCorp MoU is limited to a framework for exploring research and development collaboration. Its significance will depend on whether the companies move from exploratory work to defined projects, a step that has not been announced.