BASF's Personal Care business and ParagonCorp, described in the announcement as Indonesia's largest personal care company, have signed a memorandum of understanding to examine joint work on cosmetic innovation grounded in science. The agreement is non-binding and non-exclusive, and establishes a framework for the two companies to pursue research and development together. ParagonCorp is the first beauty company in Indonesia to enter into such an MoU with BASF's Personal Care unit.
The arrangement is intended to pair BASF's capabilities in ingredients and formulation science, together with its global research reach, with ParagonCorp's understanding of local consumers and its product development experience. Within that framework, the partners will look for new cosmetic concepts built on scientific advances. Because the MoU is non-binding, it sets out an intention to collaborate rather than committed products, volumes or outcomes.
Company leaders frame the collaboration
Dr. Chang Wang, vice president of business management for Personal Care in Asia Pacific at BASF, said innovation carries the most meaning when it stays close to consumers, and that combining science with a deeper reading of changing expectations could open 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, views innovation as beginning with an understanding of consumer needs and continuing to develop through science-based approaches.
A market drawing more attention
The agreement arrives as Indonesia's cosmetics sector builds momentum. In September, the Ministry of Industry reported that the country's cosmetic exports reached US$473.8 million in 2025, a 13.7% increase from US$416.8 million the year before.
The ministry has also 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. According to the report, SMEs make up the bulk of the domestic cosmetics industry.
Domestic offerings are widening as well. Earlier this year, Wardah, a ParagonCorp subsidiary, launched Wardah Skinverse 2026: Skin Longevity Clinic, which the report describes as Indonesia's first holistic skin longevity clinic.
Halal rules and a longer timeline
Alongside that expansion, 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 authorities extended the compliance deadline by two years to October 2028, a change intended to give the halal ecosystem time to prepare and to grant businesses somewhat more certainty.
For BASF and ParagonCorp, the MoU remains an exploratory step. The announcement does not indicate specific products, timelines or commercial commitments arising from the framework, so any concrete collaboration would depend on further agreements between the two companies.