PT Paragon Universa Utama (Paragon Corp), the holding company of PT Paragon Technology and Innovation, is the biggest beauty and personal care company in Indonesia. With end-to-end capabilities spanning research, manufacturing, marketing, distribution and retail, Paragon Corp has built a powerhouse portfolio of brands that cater to diverse consumer needs across the country.
Originally founded in 1985 by husband-and-wife duo Subakat Hadi and Nurhayati Subakat, the company began producing haircare products under the brand name Putri, but it was in 1995 that business really kicked off with the launch of Wardah Cosmetics, Indonesia’s first halal-certified make-up and skincare, haircare and body care products.
This was followed by the success of Make Over, catering to professional makeup needs, Emina, targeting the younger demographic, and Kahf, focusing on men’s grooming products. Today, Paragon Corp boasts a workforce of over 10,000 employees, manufactures 14 different brands, produces approximately 185 million units annually and is led by Group CEO Harman Subakat, a second-generation leader of the family-run business.
“What makes Paragon Corp different is our mindset of creating impact beyond business,” Subakat tells The CEO Magazine. “That includes our collective leadership, our love for the consumer and our entrepreneurial mindset.”
Rise to the top
Subakat’s journey to Group CEO started from the bottom of the ladder when he joined the business after graduating. He asked his parents where he could start if he wanted to improve the company, and they suggested commercial sales. Thanks to his influence, after just a few years, the entire department had improved and Harman moved on to his next challenge in 2001: logistics.
At this time, Paragon Corp was an original equipment manufacturer (OEM), producing 90 percent of its products for other companies rather than itself. Another challenge the company faced was that relatively few retailers wanted to stock Paragon Corp’s products.
“These challenges ended up being a blessing in disguise because it forced us to build our strength in distribution and marketing,” Subakat explains. “As a result, Wardah Cosmetics started selling really well, which led us to shift our factory capacity, making less of other companies’ brands and more of our own.”
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As Paragon Corp grew from strength to strength, Subakat rose through the ranks, eventually taking over as Group CEO in 2019. Since then, the company has experienced significant growth, fueled by its commitment to innovation and its ability to adapt to evolving consumer preferences.
Through strategic marketing campaigns targeting Indonesia’s growing middle-class market, combined with the increasing demand for halal-certified beauty products, Paragon Corp positioned itself as a leader in the cosmetics industry.
“I believe in hyper-personalization and going beyond consumer expectations,” Subakat says. “We’re not about pushing products to the market, but instead really understanding different consumers and their needs.
“We also really value entrepreneurialism within Paragon Corp. This mentality was the foundation of the company, and we must continue to nurture it as we grow. I’m also a firm believer in digital technology, including AI, which will be clear enablers when it comes to bringing all these priorities together.”
Beyond business
Paragon Corp’s quality products and savvy marketing only tell part of its success story. Throughout the company’s history, Paragon Corp has striven to create a positive impact on society, a priority it has always put ahead of growth.
“I learned two important principles from my mother,” Subakat says. “Firstly, always ask how we can produce the same product at a lower price, and secondly, how can we produce a higher-quality product at the same price?
“These principles are rooted in our belief that business isn’t just about money – it’s about creating positive impact. One of the ways we live this is by prioritizing the wellbeing of our consumers. That’s why we started the ‘#beyondbusiness’ movement in recent years.”
As part of this movement, Paragon Corp has made sustainability a cornerstone of its operations. For the company, sustainability goes beyond meeting targets or producing reports – it reflects a deeply held belief in the responsibility to serve as stewards of the Earth, entrusted by a higher purpose, and to create as much positive impact as possible.
Paragon Corp actively collaborates with environmental organizations to promote clean water access, improve waste management and support ecological preservation.
“Sustainability is not only about nature or preserving the earth; it’s about creating an ecosystem that creates impact,” Subakat says.
“Our aim isn’t to grow first and then create impact; impact is at the core of Paragon Corp and this philosophy fuels our growth, not the other way around.”
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As a result, Paragon Corp’s CSR initiatives extend beyond environmental concerns, covering education, health and women’s empowerment. For example, the company invests in teacher training, scholarships and infrastructure improvements to enhance educational opportunities across Indonesia.
In the health sector, Paragon Corp partners with organizations to improve healthcare access, particularly for women and children. Its women’s empowerment programs aim to help women become the best versions of themselves by creating safe spaces where they feel heard and supported.
These initiatives foster self-understanding and confidence, enabling women to embrace their many roles in society – as mothers, daughters, wives, leaders and changemakers – with a sense of fulfillment and purpose. Together, these efforts underscore Paragon Corp’s dedication to uplifting communities and driving positive social change.
“Over the past five years, there has never been a discussion about profit among board members,” Subakat says. “That’s not how conversations are driven. We talk about growth and impact, not profit. Through our actions, we believe our love for consumers will lead us to winning consumers’ hearts.”
Leadership lessons
This distinct approach to business can also be seen in Subakat’s leadership philosophy.
“To ensure the legacy and sustainability of the business, I follow the principle of Amanah, which encompasses trust, honesty and loyalty,” he says.
“This means I view leadership as a collective activity whereby each of our family members can complement one another and we can be stronger together.
“As a leader, I see my role as a host and a provocateur in a positive sense. I facilitate ideas by provoking them from the wider team. We always start with our purpose, then we translate this to our aspirations, which inform our strategic themes, which then become initiatives.
“These initiatives may have some challenges, so we then focus on unlocking those challenges. This bottom-up approach is a unique aspect of Paragon Corp that allows ideas to flourish.”
One of the ways Subakat helps this process is by ensuring that all paragonians, the affectionate name for all company employees, are seen as and treated as equals.
“If you walked into a meeting room, you wouldn’t be able to spot the CEO simply by looking unless you’d done your research,” he says. “This helps all paragonians share their ideas and improve our decision-making.”
As a sign of appreciation for its employees, Paragon Corp brought 1,200 team members to Kuala Lumpur, Malaysia, for a large-scale corporate gathering. Held annually, the event is designed to align hearts and minds around a shared purpose – ensuring that wherever employees work and whatever role they play, they are guided by the same compass: ‘For the Greater Good, for Life.’
“This is a manifestation of our appreciation, our trust and our commitment to our paragonians,” he says. “As a family business, our inspiration continues to come from the values that have guided us since day one, and we believe that Paragon Corp can only be as big as the dreams and capacity of our people.”
Super suppliers
Another key factor for Paragon Corp’s success is the strong strategic relationships it has formed with its suppliers over the years.
“We’re focused on long-term partnerships; this means being open and ensuring that both parties benefit. We don’t want to put the other party at a disadvantage,” Subakat says.
“We never choose suppliers solely on who has the cheapest price; instead we consider values and commonalities when it comes to growing together. This includes the willingness to challenge the market by improving our processes and costs.
“If we improve, there’s a benefit for the customer and the supplier as well, so we’re very open to sharing knowledge with partners to help us grow together.”
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Paragon Corp also prides itself on never asking for extended payment terms from its suppliers. The only exception to this was in 1990, when a fire destroyed Paragon Corp’s factory, office and the Subakat family home, which at the time were all housed under one roof as part of the company’s early days as a home-based industry. This was the only time the company has asked for extended payment terms, and once Paragon Corp recovered, it paid its suppliers in full.
“Thanks to our long-term partnerships and the high level of trust on both sides, we benefit from insights from our partners,” Subakat says. “Furthermore, the continuity of our supplies is better assured because of our strong relationships. This ecosystem helps us produce products for the best price and at the best quality.”
This is helped by regular supplier gatherings, whereby hundreds of supplier representatives come together to discuss how to work better together.
Looking ahead, Paragon Corp has recently announced that it will expand into South-East Asia, the Middle East, the United States and Europe, a plan that will involve establishing regional offices, forming local manufacturing partnerships and implementing sustainability initiatives to cater to diverse beauty needs.
With its wide variety of quality products, strong supplier ecosystem and much-loved brands, the company is well positioned to increase its positive impact on society, not only in Indonesia but worldwide.
“Our philosophy of creating impact first and growing second is very meaningful and effective,” Subakat says. “Many people won’t follow this, but for those who do, we can build a good society together.”
