These three top companies of Indonesia are evidence of the country's robust domestic consumption. Indonesia is characterized by a rapidly expanding middle class and consumptive behaviour is increasing accordingly. Companies that are able to tap this growing middle class segment through good corporate management and by having a good distribution network are in a lucrative position.

Financial institutions, which had been expanding significantly in recent years, have lost some momentum this year as Indonesia has been hit by financial turmoil after the Federal Reserve announced to reduce or stop its quantitative easing program. In combination with high inflation and a current account deficit it has resulted in an outflow of foreign capital, impacting negatively on Indonesia's currency and stock indices.

Top Market Capitalization on 10 September 2013:

Company    IDR trillion
HM Sampoerna       293.66
Astra International       257.07
Unilever       251.79
Bank Central Asia       241.62
Telkom       221.76
BRI       198.59
Bank Mandiri       184.33
Perusahaan Gas Negara       130.90
Semen Indonesia        86.01
Gudang Garam        76.19

It is also interesting to note that the current top three companies of Indonesia are all foreign dominated. Since 2005, HM Sampoerna is for 97.95 percent owned by Philip Morris Indonesia, subsidiary of the international cigarette and tobacco giant. Astra International is for over 50 percent owned by Singapore-based Jardine Cycle & Carriage Ltd, subsidiary of the Jardine Matheson Group. Lastly, Unilever Indonesia is for 85 percent owned by its Dutch holding company.

Top Market Capitalization Indonesian Companies:

                  End 2011                   End 2012         10 September 2013
    Company IDR trillion     Company IDR trillion     Company IDR trillion
Astra International    299.58 Astra International    307.68 HM Sampoerna    293.66
Bank Central Asia    195.27 HM Sampoerna    262.52 Astra International    257.07
HM Sampoerna    170.94 Bank Central Asia    222.12 Unilever    251.79
BRI    164.85 Bank Mandiri    187.11 Bank Central Asia    241.62
Bank Mandiri    155.93 Telkom    182.45 Telkom    221.76
Unilever    143.44 BRI    169.74 BRI    198.59
Telkom    142.13 Unilever    159.09 Bank Mandiri    184.33

Source: Investor Daily