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.
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.
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.
Sutan Banuara, Director Brand Finance Indonesia
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.
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.
Alex Haigh, Managing Director Asia Pacific
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.