BASF 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. ParagonCorp is the first beauty company in Indonesia to sign an MoU with BASF's Personal Care business.
The collaboration would combine BASF's capabilities in ingredient and formulation science and its global research with ParagonCorp's local understanding of consumers and product development. The companies said they would use those combined strengths to explore novel cosmetic concepts founded on scientific advances.
Dr. Chang Wang, vice president of business management for Personal Care, Asia Pacific at BASF, said innovation carries the most value when it remains connected to consumers. According to Wang, pairing scientific work with a stronger grasp of changing expectations can open new possibilities and make personal care more relevant.
Dr. Sari Chairunnisa, deputy CEO and chief R&D officer at ParagonCorp, said the company believes innovation should start with an understanding of consumer needs and then evolve through science-based approaches. She described ParagonCorp as a purpose-driven beauty technology company.
The MoU is a framework for exploration rather than a completed product launch. Its non-binding, non-exclusive terms mean it does not by itself commit the companies to a particular commercial program, although it gives them a structure for joint R&D discussions.
The agreement comes as Indonesia's cosmetics industry gains momentum. 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.
The ministry has also increased support for small and medium-sized 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.
Domestic product development is expanding as well. Earlier this year, ParagonCorp subsidiary Wardah launched Wardah Skinverse 2026: Skin Longevity Clinic, described as Indonesia's first holistic skin longevity clinic.
At the same time, the Indonesian government is tightening its regulatory framework. It 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, a move intended to give the halal ecosystem time to prepare and provide businesses with more certainty.
For BASF and ParagonCorp, the MoU creates a framework to explore science-led concepts against local consumer expectations while the market grows and its compliance requirements evolve. The companies have framed the effort as exploratory, with the agreement providing the basis for further R&D work rather than a guarantee of specific products.