Telkom Indonesia Named Indonesia’s Most Valuable Brand for 5th Consecutive Year
Every year, leading brand valuation and strategy consultancy Brand Finance puts thousands of the world’s top brands to the test, evaluating which are the most valuable and strongest. Brand Finance Asia Pacific has just released its annual Brand Finance Indonesia 100 2021 report, showcasing the top 100 most valuable and strongest Indonesian brands.
Telkom Indonesia has claimed the title of Indonesia’s most valuable brand for the 5th consecutive year, despite recording a 19% brand value loss to US$3.9 billion. Fellow telecoms brand, Indosat Ooredoo, has also entered the top 10 this year, jumping from 15th last year, following an impressive 32% brand value increase – the only brand in the top 10 to record a brand value growth.
The banking industry continues to dominate the top 10, with four brands featuring with a combined brand value of US$9.3 billion. BRI is the most valuable banking brand, claiming second spot in the overall ranking with a brand value of US$3.1 billion. The telecoms and tobacco industries are the second and third most valuable sectors respectively across the nation.
In addition to measuring overall 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. According to these criteria, BCA is once again Indonesia’s strongest brand, with a Brand Strength Index (BSI) score of 91.6 out of 100 and a corresponding elite AAA+ brand strength rating. Telkom Indonesia is the second strongest brand with a BSI score of 87.1 out of 100, Bank Mandiri follows in third with a BSI score of 86.9.
The 18 banking brands account for 30% of the total brand value in the Brand Finance Indonesia 100 2021 ranking. As Indonesia further develops, we expect consolidation across the sector, so it will be interesting to see which brands survive in the coming years. Banks who can digitalise and remain relevant will be the ones that will win.Samir Dixit, Managing Director of Brand Finance Asia Pacific
The top 10 account for 63% of the total brand value in the ranking, while the bottom 50 brands contribute only 9% of the total brand value, highlighting the significant effort required from smaller brands should they wish to contest the status quo across the nation.
The brand with the highest intangible value is Silver Queen with a brand value to enterprise value ratio of 58%, followed by MPM at 51% and Indomie at 40%, highlighting the role of brands in overall business success, especially in the food sector.
The Brand Finance Indonesia 100 2021 ranking is very top heavy again this year. We would like to see a more diverse mix at the top and more significant brand value increases at the bottom. To do so, brands must focus on building brand strength, rather than being sales and offers driven. Such tactics might help in the short term but can ultimately undermine the long-term value of brands. Boards must treat brands as strategic assets, instead of seeing them as legal trademarks only.
Samir Dixit, Managing Director of Brand Finance Asia Pacific