WPP and Millward Brown on Wednesday (19/8) launched the inaugural BrandZ Top 50 Most Valuable Indonesian Brands ranking, placing BCA as the top Indonesian brand, valued at USD 9.918 billion (IDR 136.9tn). Throughout the list, banks make up the largest group of companies followed by tobacco brands, while telecom companies combine for third place.
The combined brand value of what is going to be annually updated Top 50 stands at $64.6bn, putting the value of Indonesia’s strongest brands close to that of the Top 50 Indian brands ($69.6bn) but only one-seventh of the value held by China’s Top 50. The top five brands alone account for 57% ($37bn) of the value – a concentration of power that is mirrored in the India, China and Brazil rankings.
While banks make up 24% of the list with 12 brands, their combined brand value is 43% of the entire value of the top 50 and $24.3bn is held by the top three banks, BCA, BRI, and Mandiri. It goes to show that banks remain the foremost well known brands in the country even compared to brands in any other industry.
Global BrandZ Valuation Director Elspeth Cheung said that despite the popularity of many privately held companies, the companies within the BrandZ top 50 list must be public companies. This is because they require publicly available financial information to calculate the brand value, while privately held companies tend to not disclose that.
“We selected brands that met either of the two qualifying criteria: The brand was originally created by an Indonesian enterprise and is owned by an enterprise listed on a credible stock exchange; or the brand is owned by an enterprise listed on Jakarta Stock Exchange”, she said on the report. This explains the omission of brands from companies such as tobacco giant Djarum and tea manufacturer Rekso International which owns Sinar Sosro and operates McDonald’s Indonesia, and the appearance of foreign brands Ace Hardware, Marlboro, Pond’s, and Sunsilk, on the top 50.
The report revealed that the top 25 brands combined have 3.75x the brand value of the bottom 25. This means that companies who invest well to maintain a high value of their brands are much more likely to achieve that goal than those who don’t.
One aspect that is unique to Indonesia in BrandZ’s findings is the fact that tobacco brands are still holding a strong position collectively. Tobacco consumption remains very high in Indonesia despite global decline, which places tobacco brands at number two behind banks.
Within the technology sector, it’s common to refer to Indonesia’s top mobile carriers as the big three. Telkomsel, XL Axiata, and Indosat are the largest and most aggressive companies in the business and this is reflected similarly in terms of brand value. They occupy 3rd, 15, and 16th positions respectively.
The results of these findings can be considered to closely represent the everyday lives of the typical Indonesian. While the financial sector remains a backbone of the economy, Indonesians in general have no qualms about tobacco consumption. The need to connect is represented by the telecom companies and the retail and FMCG sectors highlight their grocery priorities.
The full report is available from WPP’s website in a number of formats including PDF, video, and infographic.