These are the most valuable brands in Indonesia in 2023

BRI has clinched the position of the most valuable brand in Indonesia this year, with its brand value increasing 15% to US$4.3 billion, while maintaining a brand strength rating of AAA. This follows a strong net profit of US$2.5 billion in the third quarter of 2022, representing a significant year-on-year growth of 106.14% for the brand.

Coming in second was Telkom Indonesia, with the brand value of US$4.0 billion. Rounding off the list of top five most valuable Indonesia brands were Pertamina, Bank Mandiri, and PT HM SAMPOERNA, according to Brand Finance’s Indonesia 100 2023 report.

Which are the strongest Indonesian brands?

BCA retained its title of being Indonesia’s strongest brand with brand strength rating of AAA+, although its brand value dipped by 3% to US$2.9 billion. The decline in brand value was mainly due to the depreciation of the Indonesian Rupiah against the US Dollar. The banking brand had made enormous gains in 2022, achieving a total loan growth of 11.7% year-on-year.

On the ESG front, BCA ramped up its sustainability efforts with increasing participation in sustainable financing and management of waste from business operations. By December 2022, the brand saw credit disbursements to sustainable sectors increase by 14.9% year-on-year to reach US$12.3 billion, contributing 25.4% to BCA’s total financing portfolio.

Following closely behind BCA are Bank Mandiri, BRI, BNI and Telkom Indonesia.

Don't miss: Which are the most valuable brands in Indonesia in 2022?

Which are the fastest Indonesian brands?

Indah Kiat Pulp & Paper has topped the list of the fastest growing brand in Indonesia as its brand value surged by 48% to US$367 million, propelling it to 23^rd place. The engineering & construction brand garnered a brand strength rating of AA, decreasing slightly from AA+ last year. According to the report, its brand performance was driven by impressive financial performance, with a consolidated net profit increase of 62.9% to US$857.5 million in 2022.

Committed to sustainability goals, it has implemented energy efficiency programmes in its production processes. Overall, it aims to reduce greenhouse gas emissions through energy efficiency processes in both paper production processes and power plant operations. In the past three years, it has reduced energy usage by 2.9% for electricity and 3% for steam. The brand has also actively incorporated ESG principles into its business practices.

Following Indah Kiat Pulp & Paper are Bintang, Roma, PLN and adaro.

One of the greater takeaways from the report is that mining brands in Indonesia yielded much harvest in their brand values as demand for energy and oil increased due to fallout from the Ukraine conflict.

All mining brands posted brand value increases of at least 5%, with all but one either seeing improvements to or maintaining their rank positions. Higher coal prices drove financial performances, and consequently brand value of several mining brands rose. For instance, brands such as Bayan Resources (brand value up 34% to US$178.76 million), jumped eight places to 44th position, Adaro Energy (brand value up 32% to US$177.07 million), gained six positions to reach 45th position, Indika Energy (brand value up 10% to US$101.65 million), maintained its ranking at 64th place, Indo Tambangraya Megah (ITM) (brand value up 7% to US$73.83 million) saw its ranking decrease by one position to 73rd and Bukit Asam (brand value up 10% to US$71.08 million) posted a two-place rank improvement to 76th position.

Meanwhile, United Tractors (brand value up 5% to US$93.48 million) retained 67th position through growth attributed to stronger revenue, in turn supported by higher contracting revenues and sales of construction machinery.

Alex Haigh, managing director of Brand Finance APAC said, “Fuelled by the nation's energy and oil demand, mining brands have shown outstanding growth in Brand Finance’s Top 100 Indonesian brands rankings this year. This growth in brand value parallels optimistic financial performance as the economy resumes post-pandemic activity. We also see strong performance for brands from other sectors in our report, such as BRI and Indah Kiat Pulp & Paper, which have been committed to improving their sustainable efforts while growing their brand value.”

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