Business

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Indonesian Cosmetics Firm Going Global

Forty years ago this month, Indonesian pharmacist Nurhayati Subakat took a leap of faith. Leaving her job at a Jakarta cosmetics company, she launched her own business from the family garage. Partnering with her husband, chemical engineer Subakat Hadi, she began producing salon-specific shampoos.

Recognizing a growing demand for halal-certified cosmetics, Nurhayati introduced the Wardah brand in 1995. Over the next 14 years, the company’s growth accelerated, fueled in part by the rise of the hijab as both a symbol of faith and a fashion statement. It wasn’t until 2011 that the company adopted its current name—Paragon Corp.

Since then, Nurhayati and her three children—Salman, Harman, and Dr. Sari Chairunnisa—have expanded Paragon into a formidable beauty empire. Today, the company manages 14 brands, operates 43 distribution centers, and employs 14,000 people across Indonesia and Malaysia. Wardah remains its flagship brand, contributing more than two-thirds of total revenue.

Just last month, at the prestigious Harvard Asia Business Conference, Paragon announced that it is expanding into Southeast Asia, the Middle East, the United States, and Europe.

In an exclusive interview held on the sidelines of the conference, Sari highlighted Paragon’s longstanding success in Indonesia with its replicable business model that focuses on sustainability, an inclusive approach to beauty, and a commitment to empowering local communities.

Dr. Sari Chairunnisa
(Facebook)

She also shared details of the multi-phased global expansion plan, which includes establishing regional offices, forming local manufacturing partnerships, and implementing sustainability initiatives to cater to diverse beauty needs.

Paragon, Sari said, intends to leverage its strong digital presence to introduce its eco-friendly, halal-certified beauty products worldwide.

Sari would go on to speak at a panel focused on “Beauty in Asia: Distinctive Innovations Facing Global Trends,” and noted during the panel that the conference “provides an invaluable opportunity to connect with global business leaders who share a passion for innovation, sustainability, and inclusivity.”

Sari, a dermatologist, emphasized Paragon’s commitment to ethical beauty and global inclusivity. “We believe,’’ she said, “our mission of promoting beauty that empowers and celebrates diversity is a message that transcends borders. Our goal is to build an international presence that reflects our commitment to positive change, both in beauty and in business.”

As a hijab-wearing Muslim, Sari envisions Paragon as a global leader in halal beauty and skin care products. The company’s manufacturing facilities all meet the strict ethical and religious standards required for halal certification across international borders.

For example, because lipstick can be consumed while eating or drinking, no lipstick can be internationally certified as halal if it contains ingredients considered haram – such as non-halal animal derivatives, ethyl alcohol, or any substance that may be detrimental to human health.

The American Halal Foundation says that finding accurate information about the true purity of ingredients can be challenging for Muslim consumers, as it requires knowledge of the purity and the source of each ingredient and of the manufacturing methods used to create cosmetic products. Many wrongly believe that any item labeled “vegan” is automatically halal, but the two terms are not interchangeable.

Indonesian regulations specify that products entering, circulating, and trading within its borders must be halal certified by the Halal Product Assurance Agency, including imported products from abroad, and notably including cosmetic products that enter a mandatory stage in 2026.

Ensuring the halalness of a cosmetic product requires routine material checks to several types of ingredients that have critical halal points – including raw materials, additives, processing aids, packaging, sanitizers, and validation media for washing results.

It was the pioneering work of entrepreneurs like Nurhayati Subakat that opened the doors for widespread acceptance of halal-certified cosmetics in Muslim societies.

A study by Grandview Research found that the global halal cosmetics market had reached $16 billion by 2015 but is expected to exceed $50 billion in 2025. Paragon’s leadership team found the Harvard Asia Business Conference to be a platform for engaging with industry peers, sharing insights on business growth, and establishing strategic partnerships to foster collaborations with international distributors and retail partners.

Paragon’s commitment to sustainable beauty practices is evidenced by its decision to increase its investments in research and development to introduce new products tailored to specific regional preferences and trends without abandoning its core values of innovation and sustainability. Sari Chairunnisa has overseen the company’s use of ethically sourced ingredients, its efforts to reduce waste through eco-friendly packaging, and its reliance on cruelty-free product development.

Paragon’s longstanding commitment to corporate social responsibility and its regional leadership in ethical and inclusive beauty has not gone unnoticed. The company just last year was awarded the 2024 Deloitte Award as one of Indonesia’s Best Managed Companies, and both Fortune Times and Fortune Indonesia have recognized Paragon for its innovation, sustainability efforts, and business acumen.