The global economy has become fast-paced and, consequently, branding has become an essential strategy for businesses seeking to carve out a distinct identity. Nowhere is this more evident than in Indonesia, a country with a burgeoning youth population, high smartphone penetration and a rapidly expanding digital economy.
As global and local brands compete for consumer attention, a well-crafted branding strategy plays a pivotal role in distinguishing products and services. Alfin Frans Nainggolan and Frizolla Putri from the Economic Research Institute for ASEAN and East Asia (ERIA) recently conducted a comprehensive study examining branding strategies in Indonesia.
The research highlights the intersection of intellectual property (IP), digital transformation and economic growth, offering valuable insights into how businesses can leverage branding to thrive in an increasingly competitive market.
IP AND BRANDING
A fundamental aspect of branding in Indonesia revolves around intellectual property (IP) rights. Trademarks and geographical indications (GI) are among the key tools businesses use to protect their brands. The Directorate General of Intellectual Property (DGIP) oversees the registration and regulation of marks, ensuring legal protection for brand owners.
Between 2018 and 2023, Indonesia saw a significant increase in trade mark applications, reflecting a growing awareness of branding among businesses. Domestic applications, in particular, surged from 56,696 in 2018 to 113,061 in 2023, underscoring the heightened emphasis on brand protection. The Madrid Protocol, which facilitates international trade mark registration, has also played a role in expanding the reach of Indonesian brands beyond local markets.
Beyond trademarks, geographical indications serve as a valuable tool for protecting locally produced goods. Products such as Gayo Arabica coffee, Tenun Ikat Alor textiles and Beras Adan Krayan rice have gained recognition through GI registration, ensuring their authenticity and reinforcing their market value. These protections help preserve the cultural heritage associated with local products while enhancing their economic potential.
DIGITAL TRANSFORMATION
Indonesia’s rapid digital transformation has significantly influenced branding strategies.
With internet penetration soaring and e-commerce platforms thriving, businesses have had to rethink how they engage with consumers. Social media, influencer marketing and digital campaigns have become integral to brand-building efforts.
COVID-19 accelerated the shift towards digital platforms, compelling businesses to innovate their branding strategies. Start-ups and established enterprises alike have harnessed digital tools to reach wider audiences, create personalised customer experiences and build stronger brand identities. Brands such as 3Second, Bodypack and Brodo have successfully leveraged online channels to enhance their visibility and connect with their target market.
BRANDING IN KEY SECTORS
Branding is not confined to traditional consumer goods; it extends across various sectors, including agriculture, fashion and finance. In agriculture, branding has helped elevate the status of Indonesian coffee and other locally grown products. By emphasising sustainability, authenticity and quality, farmers and cooperatives have positioned their products as premium offerings in global markets.
The fashion industry has also embraced branding as a means of differentiation. Local brands such as Djalin and UNKL347 have built unique identities, blending Indonesian cultural elements with modern aesthetics. Collaborations with international designers and influencers have further strengthened their market presence. In the financial sector, branding plays a crucial role in establishing trust and credibility. Companies like Akseleran have focused on creating a strong brand identity to attract customers in the competitive fintech landscape. By prioritising transparency and reliability, these brands have successfully gained consumer confidence.
LESSONS FOR BRUNEI
Brunei can draw valuable lessons from Indonesia’s branding strategies to strengthen its own market presence. Although Brunei’s economy is smaller, the principles of IP protection, digital transformation and sector-based branding remain just as relevant.
Brunei can enhance brand protection for its unique products through trademarks and geographical indications. Local specialities such as Brunei’s traditional herbal remedies, handcrafted textiles and aquaculture products could benefit from GI registration, adding credibility and market appeal both locally and internationally.
With increasing internet penetration and e-commerce growth, Bruneian businesses can take inspiration from Indonesia’s success in digital branding. Local enterprises should invest in online branding through social media engagement, influencer partnerships and data-driven marketing to expand their reach.
Just as Indonesia has successfully branded its coffee, fashion and fintech industries, Brunei can focus on strategic branding for key industries such as halal food production, eco-tourism and financial services. By positioning itself as a premium destination for high-quality, ethical products and services, Brunei can build a strong brand identity.
Indonesia’s government has played an active role in supporting branding initiatives, such as the ‘1000 Startup Digital Programme.’ Brunei’s government can similarly foster branding innovation by providing incentives, funding and education on brand management for local businesses and entrepreneurs.
CHALLENGES AND OPPORTUNITIES IN BRANDING
Despite the progress in branding strategies, challenges remain. One major hurdle is the risk of counterfeiting and brand infringement. Without stringent enforcement, businesses may struggle to protect their brand assets effectively. Additionally, while digital transformation offers immense branding opportunities, it also demands continuous adaptation to evolving consumer preferences and technological advancements.
Opportunities, however, abound. The rise of conscious consumerism has created a demand for ethical and sustainable branding. Businesses that align their branding strategies with social and environmental values can cultivate a loyal customer base. Moreover, government initiatives aimed at supporting branding efforts provide a conducive environment for brand innovation and growth.
THE FUTURE OF BRANDING
As Indonesia continues to emerge as a key player in the global economy, branding will remain a critical factor in business success. Companies that invest in IP protection, embrace digital transformation and align their branding efforts with market trends will be better positioned to thrive.
Brunei, too, has an opportunity to enhance its branding landscape by learning from Indonesia’s approach. By fostering innovation, authenticity and strategic brand management, the Sultanate’s businesses can leverage branding as a powerful tool for economic growth and global recognition. With the right policies and business strategies in place, Brunei can establish itself as a strong contender in regional and international markets. – Izah Azahari
