Indonesia's largest company by market capitalization is still HM Sampoerna, the country's largest tobacco company. The company has been the top company in Indonesia since March 2013 when it replaced Astra International, Indonesia's largest diversified conglomerate, on the top spot. Astra had been Indonesia's largest company since 2010. Currently, the third-largest company in terms of market capitalization is Unilever Indonesia. Unilever, which is Indonesia’s largest consumer goods producer, jumped four places in the ranking since late 2012.
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:
|Bank Central Asia||241.62|
|Perusahaan Gas Negara||130.90|
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|
Source: Investor Daily