ASEAN KEY DESTINATIONS
Indonesian banks climb in global rankings
A global survey has found five Indonesian lenders among the world's 500 most valuable banking brands, according to consultancy company Brand Finance.
The local banks on the list are Bank Rakyat Indonesia, which came in 195th, followed by Bank Mandiri (208), Bank Central Asia (225), Bank Negara Indonesia (256) and Bank Danamon (311).
BNI was ranked for the first time, and the others improved on their showing from last year's survey.
BRI, the second-largest bank in the country by assets, moved past Mandiri, the leader by assets, on the strength of its brand value. BRI's value was estimated at $682 million, up from $455 million, while Mandiri improved to $638 million from $473 million. BRI had a brand rating of AA- while Mandiri was rated A.
BCA had the highest market capitalization of the ranked Indonesian banks and its rating matched that of BRI, but its brand value was third among its peers. BNI surged into the ranking, meanwhile, outstripping Danamon in all three categories.
Among the factors supporting the growth of Indonesia's banking sector, the survey said, are growing consolidation in the sector, the growth of Islamic finance, better access to loans for micro, small and medium enterprises, and the growing strength of lenders in rural areas.
Those factors allow national banks to compete with international brands, it said.
Brand Finance also said Indonesia was relatively immune to the global financial crisis thanks to stable growth and strong domestic markets. The survey was published on Tuesday in The Banker magazine.
Brand Finance calculated brand value using the royalty relief method, which has been validated by the International Standard Organization. It estimates the price of royalties to be paid by a company executive to the company owner of the brand.
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