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Big tobacco shines on ranking of Indonesia’s most powerful brands

A Mild ad

A Mild advertisement

Tobacco firms feature heavily in a ranking of Indonesia’s most powerful brands released by market research group Millward Brown today.

A Mild, a popular local brand of “kretek” cigarettes, ranks fifth in a top 10 that also features Surya, Dji Sam Soe and Marlboro. Indonesia, where tobacco companies are still allowed to advertise on television, is the only market measured by Millward Brown that features so many tobacco firms. There are seven tobacco brands in the BrandZ Indonesia Top 50, accounting for $14.8bn of its value.

BrandZ study Indonesia

The BrandZ Top 50 Most Valuable Indonesian Brands

But banks, led by BCA and BRI, top the table. BCI pioneered mobile in Indonesia, and popular innovations such as pre-paid payment card Flazz have helped establish a US$10bn brand valuation.

Telco firm Telkomsel and retailer Matahari are the only companies outside of the financial services or tobacco industry in the top 10.

Outside the top 10, property, retail and FMCG brands make up the bulk of Indonesia’s most powerful brands – FMCG brands make up 28 per cent of the ranking; a high proportion compared with other markets, Millward Brown says.

However, the technology sector does not figure prominently. Home-grown tech brands have yet to achieve significant scale, the report suggests.

The combined brand value of the top 50 at $64.6bn, putting the value of Indonesia’s strongest brands close to that of the top 50 in India ($69.6bn) but only one seventh of China’s top 50.

Ranjana Singh, boss of WPP Indonesia, who spoke to Mumbrella in an interview in Jakarta last month, commented: “Indonesia’s fast growth, stability and consumer confidence create perfect conditions for brand-building. Indonesians can afford to consider a greater range of brands, and they recommend those they love. They’re also demanding: they want to be offered more, and to feel special.”

“Brands will win in Indonesia if they can meet consumers’ functional needs, while communicating stories that build meaningful connections. This will be well worth the investment: BrandZ data shows that businesses in Indonesia which nurture the power of their brands are four times more valuable than those that don’t,” she said.

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