Which are the most valuable brands in Indonesia in 2022?

Telkom Indonesia remains the country's most valuable brand this year, with its brand value increasing 22% to US$4.7 billion. Coming in second was BRI which saw its brand value increase 19% to US$3.7 billion, according to a recent report by Brand Finance. Rounding off the list of top five most valuable Indonesia brands were Bank Mandiri, BCA, and Pertamina.

The value of the top Indonesian brands has returned to growth, with many achieving double-digit growth this year. 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, Brand Finance explained.

Sutan Banuara, director of Brand Finance Indonesia, said that 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," Banuara added. According to him, the telco's leadership and focus on the future is already delivering significant growth in brand value as a result.

In addition to calculating brand value, the report also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. 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.

Which are the strongest Indonesian brands?

While Telkom Indonesia might be the most valuable brand in the country, BCA was ranked the strongest, with its brand value increasing by 19% to US$3.0 billion and earning a AAA+ ranking, with a Brand Strength Index of 94 out of 100. According to Brand Finance, 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 to take drastic measures to reduce paper and plastic waste.

Meanwhile, Bank Mandiri was the second strongest Indonesian brand, with a 30% jump in brand value to US$3.1 billion and 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 climbed from third place in 2021 to second place this year and according to Brand Finance, its improved ranking is due to its effort in improving 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 recovery in credit," Alex Haigh, managing director of Asia Pacific, said.

However, to continue to grow, Haigh said brands need to adopt a marketing-oriented approach and Indonesian brands need to invest in brand and communications to be more visible to all stakeholders and in tech infrastructure to approach digitisation which increases productivity and growth.

PLN and Bayan Resources double brand value

PLN and Bayan Resources both double their brand value to US%1.5 billion and US$134 million respectively, making them the country's fastest-growing big brands this year. PLN has grown significantly in value this year as the electricity supplier is expected to benefit from forth-coming 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.

Bayan Resources climbed 16 places to become the 52nd most valuable Indonesian brand in connection with the current surge in commodity prices over the last quarter. Brand Finance explained that the company has benefited from reduced competition because of sanctions imposed in connection with the Russian invasion of Ukraine. It has also 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.

Every year, 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. 

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