BASF's Personal Care business and ParagonCorp, described in the announcement as Indonesia's largest personal care company, have signed a memorandum of understanding (MoU) to explore collaboration possibilities in science-backed cosmetic innovation. The agreement is non-binding and non-exclusive, and sets out 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. The arrangement 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 partners say they will use those combined strengths to explore novel cosmetic concepts founded on scientific advances. The announcement did not specify individual projects, timelines or commercial terms.
Science framed as a consumer-facing tool
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 can unlock 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 and said innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.
Indonesian cosmetics sector in focus
The MoU comes during wider momentum in Indonesia's cosmetics industry, which the companies note is attracting attention from local players and the government.
- Exports: 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.
- SME support: The ministry 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.
- New launches: Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, described at the time as Indonesia's first holistic skin longevity clinic.
- Halal requirements: The government is rolling out mandatory halal rules under which all cosmetics must carry halal certification or a clear non-halal label. Last month it extended the compliance deadline by two years, to October 2028, to give the halal ecosystem time to prepare and to grant businesses a bit more certainty.
Because the agreement is framed around exploring possibilities and carries no binding obligation, it does not by itself commit either company to specific products or launches; any output would depend on further agreements between the two parties.