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Big Indonesian brands are bouncing back to growth as nation looks to post-COVID future

27 September 2022
  • Telkom Indonesia remains Indonesia's most valuable brand with brand value up 22% leading Indonesia’s digitalisation.
  • BCA is Indonesia’s strongest brand, earning elite AAA+ ranking ahead of Bank Mandiri.
  • PLN and Bayan Resources both double their brand value to be Indonesia’s fastest-growing big name brands.

View the full Brand Finance Indonesia 100 2022 report here

Telkom Indonesia remains Indonesia's most valuable brand with brand value up 22% as it leading Indonesia’s digitalisation

The value of the top Indonesian brands have returned to growth, with many achieving huge, double-digit, growth this year, according to a new report from leading brand valuation consultancy, Brand Finance. Indonesia’s most valuable brand, Telkom Indonesia (brand value up 22% to US$4.7 billion) has led the nation, as a result of the brand’s focus on digitalisation in the telecommunications sector. Banking brand BRI (brand value up 19% to US$3.7 billion) remains Indonesia’s second-most valuable brand in the ranking.

Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. Indonesia’s top 100 most valuable and strongest brands are included in the annual Brand Finance Indonesia 100 ranking.

The substantial growth in the value of the Telkom Indonesia brand has been linked to  its strong brand promise to focus on ‘digitalisation for a better future’. The brand recognises that rapid digitalisation will be touching many different aspects of people’s lives across the archipelago and is seeking to put its services at the centre of Indonesia’s digital transformation. While there has been significant economic disruption due to the onset of COVID-19, the pandemic has propelled the need for digitisation even further as it has accelerated the process at a significant pace.

Sutan Banuara, Director Brand Finance Indonesia, commented:
“Indonesia is going through a process of national digitalisation across sectors such as entertainment, education, health, logistics, agriculture, and finance. Telekom Indonesia is putting its brand at the forefront of that process, with an aspiration to become an indispensable partner in the digital activities of Indonesians. This brand’s leadership and focus on the future is already delivering significant growth in brand value as a result.”

BCA is Indonesia’s strongest brand, earning elite AAA+ ranking ahead of Bank Mandiri

In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.

According to these criteria, banking brand BCA (brand value up 19% to US$3.0 billion) is Indonesia’s strongest brand, with a Brand Strength Index (BSI) of 94 out of 100 and a corresponding elite AAA+ brand strength rating. BCA’s brand strength has improved in part due to enhanced customer perceptions of environmental issues.

This is correlated with BCA installing solar panels on buildings to harness solar energy in order to take drastic measures to reduce paper and plastic waste. In addition to being recognised by this Brand Finance analysis, the banking brand has been recognised with various prestigious awards such as Indonesia’s Corporate Sustainability Warriors 2021 and Indonesia’s Best Corporate Sustainability Initiatives.

Fellow banking brand Bank Mandiri (brand value up 30% to US$3.1 billion) is the second strongest Indonesian brand with a BSI score of 89.6 out of 100, followed by Telkom Indonesia with a BSI score of 89.3 out of 100. Bank Mandiri improved its position in the ranking from 3rd place in 2021 to 2nd place this year. The improved brand strength of Bank Mandiri is due to the brand’s effort to improve customer evaluations of the brand’s digital services.

Alex Haigh, Managing Director Asia Pacific commented:
“Indonesia’s consumer spending has been consistently rising due to the increase in incomes, jobs, and investor confidence. Investment is benefiting from expanding demand, improvements in the investment and business climate, and a recovery in credit. However, to continue to grow, brands need to adopt a marketing-oriented approach and Indonesian brands need to invest in brand and communications in order to be more visible to all stakeholders and in tech infrastructure to approach the digitization which increases productivity and growth.”

PLN and Bayan Resources both double their brand value to be Indonesia’s fastest-growing big brands

PLN (brand value doubled to US$1.5 billion) and Bayan Resources (brand value doubled to US$134 million) are Indonesia’s fastest-growing big brands this year.

The Bayan Resources brand climbed 16 places in the ranking to become the 52nd most valuable Indonesian brand in connection with the current surge in commodity prices over the last quarter. The brand has benefited from reduced competition because of sanctions imposed in connection with the Russian invasion of Ukraine. Bayan Resources has been able to leverage its brand to meet increased demand for its product as more industrial customers trust the brand to meet future fuel needs.

The state-owned electric utility, PLN, has grown significantly in value this year as the dominant electricity supplier is expected to benefit from forthcoming infrastructure investments. Changing electricity needs with the possibility of big investment in renewable energy, puts PLN in a dominant brand position as compared to its competitors.

ENDS

Note to Editors

Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. Indonesia’s top 100 most valuable and strongest brands are included in the Brand Finance Indonesian 100 2022 ranking.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.

The full ranking, additional insights, charts, more information about the methodology, and definitions of key terms are available in the Brand Finance Indonesian 100 2022 report.

Media Contacts

Michael Josem
Associate Communications Director
Brand Finance
Shreya Hiwale
Communications Executive
Brand Finance
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Candice Menoita
Communications Executive
Brand Finance

About Brand Finance          

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes nearly 100 reports which rank brands across all sectors and countries.

Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671, and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Disclaimer

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.

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