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Indonesia 2016 | Highlights | Key Results

Indonesia Top 50 together grow to US$66 billion


The combined value of the BrandZ Top 50 Most Valuable Indonesian Brands 2016 is US$66.17 billion, a 2 percent increase over the value of the ranking a year ago. This compares to a total brand value of the Top 50 in India in 2015 of US$92.24 billion after a huge growth surge there in the past year. The Top 50 Latin American brands are worth a combined US$131.9 billion. The Global Top 100 Most Valuable Brands grew in value by 3 percent between 2015 and 2016.

BCA retains crown as nation’s most valuable brand
Bank Central Asia, known as BCA, again tops the Top 50 with a brand value of US$9.345 billion. The bank is approaching its 60th anniversary in the market, and has built a reputation for being one of the most accessible consumer banks in the country, with more than 1,200 branches, more than 17,000 ATMs and a growing range of branchless-banking innovations. BCA this year became the biggest bank in Southeast Asia by market capitalization, overtaking Singapore’s DBS for the first time in its history.
Banks, developers and tobacco dominate Indonesian index
Financial services brands, property development and management companies and tobacco brands dominate the Indonesian rankings, with these three categories accounting for 22 of the 50 brands in the rankings. It is usual in fast-growth markets for brands essential to infrastructure and development to be among the strongest, and this year in Indonesia, banks take three of the Top 5 places. There are five tobacco brands in the Top 10; World Bank data shows 72 percent of adult males in Indonesia smoke, and there is strong competition among rival brands for their loyalty.
The strongest brands grow fastest
Brands with the highest scores for Brand Contribution – the intangible asset of the brand itself, excluding financials, and what it represents to the people who know it or buy it – not only punched above their financial weight in the rankings but also posted the strongest growth over the past year. The Top 10 brands for Brand Contribution grew their brand value by 18 percent in 2015, compared to growth across the value of the Top 50 of 2 percent. These 10 brands came from six different sectors and sell products as diverse as noodles and high-end property.
FMCG brands are strongly represented
Much-loved food, drink and personal care brands feature strongly in the Indonesian Top 50, giving fast-moving consumer goods a much stronger showing in the rankings than is seen in other markets. There is a mixture of home-grown names, such as noodle and cooking sauce brands Indomie and ABC, Aqua water and Ultra milk, along with globally recognized brands that have built a strong connection with Indonesian consumers. Names like Pepsodent toothpaste, Rinso laundry care products, Pond’s and Sunsilk have come to feel like local brands.
Mega brands hold balance of power
The Top 5 brands in the 2015 ranking account for 55 percent of the total value of the Indonesian Top 50, between them worth US$36.2 billion. Such a high concentration of value at the top of the ranking is also seen in India, China and Brazil, though in the BrandZ™ Global Top 100 Most Valuable Brands rankings, value is more evenly spread across the brands in the ranking.
Learning to be lovable – and innovative
Indonesia’s most valuable brands have been doing a good job of differentiating themselves from the competition and achieving awareness through powerful positioning and communication. What they lacked, however, was lovability and a reputation for innovation. These are both key indicators of the potential of brands to grow, and they help sustain brands during tough times by keeping them in consumers’ hearts and minds. In the past year, Indonesia’s  Most Valuable Top 50 Brands have improved their BrandZ™ scores for love and innovation and have closed the gap significantly between Indonesian brands and the global average for leading brands.
BrandZ Top 50 Most Valuable Indonesian Brands 2016 Top 5 Learnings for Marketers
  1. It’s never been more important to invest in branding
There are two key reasons why now is the time to make brand-building a priority: firstly, Indonesian consumers are becoming highly engaged with brands. They are aware of them, talk about them, review and recommend them. In such a highly mobile and socially networked market, this is a huge consideration. The other reason is that investing in brands pays dividends. The Top 25 brands in terms of Brand Power in the Top 50 ranking have become five times more valuable than the next 25; just a year ago, the Top 25 were four times as valuable.
  1. Be a safe haven in difficult times
This market has known tough times; years of crisis and uncertainty were only a decade ago, and the ups and downs of the past year have underlined the fact that consumers seek out brands they know well and trust. The Indonesia Top 50 rankings shows that brand value is concentrated among brands at the top, and these are brands that not only have scale but also a reputation for reliability. The Top 5 brands between them have been in business for decades, with four of them aged over 20 and one with more than a century of experience in this market. Wary consumers seek safety in uncertain times; brands should highlight their scale, history and popularity to build trust.
3. Emotional connections fuel strong bonds
Brands that can build a meaningful connection with consumers can generate brand value that goes well beyond their financial strength. The Top 25 brands ranked for being meaningful are nearly five times more valuable than the next 25. This difference in brand value is vast – the Top 25 are worth over US$54 billion, while the next 25 ranked on meaning are worth US$11.8 billion. The successful brands here are not just making great products or providing good value for money, they are creating emotional, memorable links that resonate with consumers’ lives. FMCG brands are strong in this area, meeting a functional need but also making people feel good.
4. Projecting a strong sense of purpose can help brands stand out and grow
A mission that goes beyond the product, service or even the category helps brands set themselves apart from the crowd. The bank BRI, for instance, which is the second-most valuable brand in the Top 50 ranking, has shown resilience in what’s been a tough year both nationally and globally for banks, with its consumer-centric purpose. Its mission to reach the country’s huge number of unbanked consumers drives all its activities, and has fuelled growth in brand equity that has insulated it from harsh external conditions.
5. Innovation and love form a virtuous circle
In such a mobile-driven market as Indonesia, the need to be seen as innovative is particularly strong. BrandZ™ data and analysis in other countries shows that the brands seen as being most innovative are also those that become the most loved. That love then helps a brand sustain its connection with consumers between innovations, and forms a positive cycle for the brand. Brands such as Indomie, which is regarded with great fondness in this market, have helped Indonesian brands close the gap on love and innovation when compared with the BrandZ™ Top 100 Most Valuable Global Brands. These are the brands that will accelerate the quickest as the economy recovers, and which are well positioned for international expansion.