BASF and ParagonCorp sign MoU to drive science-backed beauty in Indonesia

BASF and ParagonCorp, Indonesia’s largest personal care company, have signed a memorandum of understanding (MoU) to explore collaboration possibilities for science-backed cosmetic innovation. 

The agreement is non-binding, non-exclusive, and sets up a framework for the two companies to work together on R&D. ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF’s Personal Care business.

The agreement brings together BASF’s capabilities in ingredient and formulation science and global research with ParagonCorp’s local understanding of consumers and product development. The companies will use these combined strengths to explore novel cosmetic concepts founded on scientific advances.

“Innovation is most meaningful when it stays close to the consumers. By combining science with a deeper understanding of evolving expectations, we can unlock new possibilities that bring greater relevance to personal care,” says Dr. Chang Wang, VP of business management, Personal Care, Asia Pacific at BASF.

Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, adds, “As a Purposeful Beauty Tech Company, we believe innovation must begin with an understanding of consumer needs and continue to evolve through science-based approaches.”

BASF and ParagonCorp will work together on R&D to develop science-backed cosmetics for Indonesian consumers.Indonesia cosmetics market strengthens

BASF and ParagonCorp’s move comes during wider momentum in Indonesia’s cosmetics industry, which is attracting attention from local players and the government. 

In September, Indonesia’s 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 stepped up its support for small and medium enterprises (SMEs) 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.

Beyond exports, domestic offerings are also expanding. Earlier this year, ParagonCorp’s subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic. The launch was called Indonesia’s first holistic skin longevity clinic.

With the cosmetic 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 meant to give the halal ecosystem time to prepare and grant businesses a bit more certainty.