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 powerful and valuable, publishing the Brand Finance Top 100 Indonesian Brands.
Click here for the Brand Finance Indonesia 100 Table
In terms of brand value, Telkom Indonesia retains its #1 position in the Brand Finance Top 100 Most Valuable Indonesian Brands in 2017. Telecom sector has increased its dominance in the top 10 by Indosat Ooredoo climbed into 9th place thereby pushing Garuda Indonesian out of the top 10. Telecom Indonesia also managed to retain the AAA- brand strength rating with 65% increase in brand value.
Growing Big 4
The four largest Indonesian banks have been performing well for a number of years and in 2017 as BRI climbed to third, BCA fifth and BNI to seventh place. Bank Mandiri was the only bank in the top 10 that not only dropped 3 places but had a marginal 3% increase of brand value. The total value of the four Indonesian banks in the table grew 171% to US$ 7.49 billion. Moreover, the brand strength of these banks has improved at least one level in terms of brand rating with BCA and Bank Mandiri being the strongest Indonesian brands with AAA rating.
Tele-tales
Telkom Indonesia and Indosat Ooredoo both seem to have significantly benefited from the high growth in mobile usage and should benefit further with penetration of smart phones gathering pace as Indonesia’s consumers are quick to embrace technological upgrades and adoption. With a fast growing younger population and increasing disposable incomes, brand building and brand stickiness in the telecom sector will be the key for companies to increase usage and penetration and win greater market share.
Indosat Ooredoo, recorded a net income increase by 184.4% to Rp 1.1 trillion, has seen its brand value rising 51% to US$844m.
“Financial companies make up 31% of the top 100 value. As Indonesia further develops, we expect consolidation in the banking sector, so it will be interesting to see which brands remain. Banks who can digitalise and remain relevant will be the ones who will win.” said Jake Ng, Consultant at Brand Finance Asia Pacific.
Samir Dixit, Manging Director of Brand Finance Asia Pacific highlighted that “While the Indonesian brands have grown extremely well at the top with both Telekom Indonesia and Sampoerna increasing their brand value by over US$ 1.7 billion each, it is the brand strength for most brands that still remains a concern. Also, the rankings still remains very top heavy with 4 banks and 4 tobacco brands and 2 telcos amongst the top 10 contributing to over 63% of the total brand value. We would like to see a more diverse mix at the top and more significant value increase at the bottom which means other brands must start focussing on their value and brand strength.”
Samir Dixit also challenged the Indonesian companies to be more brand-driven and not sales and offers-driven. These while help sell in the short term absolutely destroy the long term value and the strength of the brand. Brand has to be a strategic agenda for the senior management and boards and must be managed like any other business asset and not just a legal trademark.”
É emocionante ver as 2 principais marcas indonésias, a Telkom Indonésia e o Sampoerna, que finalmente o fizeram com a Finalização Global de Brands em 2017. As 2 marcas indonésias, existem apenas marcas da ASEAN no Global 500, incluindo o Big 3 em Cingapura-DBS, OCBC e UOB;
The brand strength, measured by Brand Strength Index (‘BSI’), the average BSI of the Top 100 Most Valuable Indonesian Brands, has improved marginally from 62.9 to 64.0 in 2017. The brands have remained stagnant in terms of their brand strength and while they may be doing well locally, they have been losing out to some of the key competitors in the region as they clearly lack competitiveness outside of Indonesian Mercado. 2017.
This year, it is noticed that the brand values are largely affected by uncontrollable external factors such as country economic outlook, risk free rate, currency exchange rate etc. In this case, Indonesian brands enjoyed the benefits of lower discount rate and better exchange rate to USD that pushed their brand values higher in 2017.
ENDS
Downloads
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations make strategic decisions.
Headquartered in London, Brand Finance operates in over 25 countries. Every year, Brand Finance conducts more than 6,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on 6,000 brands, surveying more than 175,000 respondents across 41 countries and 31 industry sectors. By combining perceptual data from the Global Brand Equity Monitor with data from its valuation database — the largest brand value database in the world — Brand Finance equips ambitious brand leaders with the data, analytics, and the strategic guidance they need to enhance brand and business value.
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 is a regulated accountancy firm and a committed leader in the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
As etapas nesse processo são as seguintes: A força da marca é expressa como uma pontuação do índice de força da marca (BSI) em uma escala de 0 a 100.
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine a faixa de royalties para cada setor, refletindo a importância da marca para as decisões de compra. Em luxo, a porcentagem máxima é alta, enquanto na indústria extrativa, onde as mercadorias são frequentemente comoditizadas, é menor. Isso é feito revisando contratos de licenciamento comparáveis provenientes do extenso banco de dados da marca Finance.
3 Calcule a taxa de royalties. A pontuação do BSI é aplicada à linha de royalties para chegar a uma taxa de royalties. Por exemplo, se a faixa de royalties em um setor for de 0 a 5% e uma marca tiver uma pontuação BSI de 80 de 100, uma taxa de royalties apropriada para o uso dessa marca no setor especificado será 4%. Analista prevê e as taxas de crescimento econômico. Os valores derivados e as opiniões apresentadas neste estudo são baseadas em informações disponíveis ao público e em certas suposições de que o financiamento da marca usou quando esses dados eram deficientes ou pouco claros. A marca Finance não aceita nenhuma responsabilidade e não se responsabiliza no caso de as informações publicamente disponíveis ser consideradas imprecisas posteriormente. As opiniões e análises financeiras expressas no estudo não devem ser interpretadas como fornecendo conselhos de investimento ou negócios. O financiamento da marca não pretende confiar no estudo por qualquer motivo e exclui toda a responsabilidade a qualquer corpo, governo ou organização.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
