Indonesia has become one of the largest business hub in South East Asia. Business blossoms throughout the country, and though the pandemic has caused a decline in the economy, in some, it's quite the opposite.
This research will present the largest Indonesian Companies based on their market capitalization. In total, there are 30 companies coming from all sorts of industry that consists of Finance, Fast Moving Consumer Goods (FMCG), Automative, Engineering & Manufacturing, Telecommunications.
Before venturing any further, it is best to establish the definition of market capitalization. Cited from Investopedia, market capitalization is best defined as how much a company is worth as determined by the stock market. It is defined as the total market value of all outstanding shares. Furthermore, to calculate a company's market cap, multiply the number of outstanding shares by the current market value of one share.
Companies are typically divided according to market capitalization into three groups:
- Large-Cap ($ 10 billion or more)
- Mid-Cap ($ 2 billion to $ 10 billion)
- Small-Cap ($300 million to $ 2 billion)
Additionally, there is a simple formula to calculate market capitalization:
Market Cap = share price x # shares outstanding
Outstanding shares can be defined as the total share of a corporation that has been authorized, issued and purchased by investors and hold by them or, simply put, the amount of shares available in the stock market that is traded between investors.
The figures represented in this article shows how much equity each companies have in the market, it doesn't necessarily mean that the numbers is the real value of each company. Additionally, the number will fluctuate often, the data shown in this article was obtained per October 2nd, 2021.
In this research as well, we'll see what kind of company dominates the market in indonesia. Here's some of the findings of the research
The Findings - Companies Market Cap
Based on the data, the top 10 Indonesian companies with the largest market capitalization are:
- Bank Central Asia ($58.26 B)
- Bank Rakyat Indonesia ($41.07 B)
- Telkom Indonesia ($25.59 B)
- Bank Mandiri ($19.87 B)
- Astra Internasional ($15.42 B)
- Bank Jago ($14.6 B)
- Chandra Asri Petrochemical ($10.66 B)
- Unilever Indonesia ($10.29 B)
- Sampoerna ($8.61 B)
- Charoen Pokphand Indonesia ($7.61 B)
The result from the current data also shows some interesting insights:
- Indonesian companies that has the largest market cap mainly came from the finance sector which is dominated mostly from state-owned banks
- Bank Jago, which has only been around from a few months, has one of the largest market cap ($14.6 B).
- Astra Internasional becomes the only company that dominated in the automotive industry with over than $15 B market cap
Understanding market capitalization is important since it is one of the parameters that determines of other characteristics in which investors are interested.