ASSESSMENT OF THE MERGER AND ACQUISITION BETWEEN PT BANK INDO AND PT BANK JAP AFTER MATCH

• Main Author: Nabila, Talitha
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63616
• Institution: Institut Teknologi Bandung

The number of banks in Indonesia made it the highest compared to countries in the Southeast Asia region. Thus, in 2019, The Financial Services Authority (OJK) issued regulation Number 41/POJK.03/2019 concerning Merger, Takeover, Integration, Consolidation and Conversion of Commercial Banks. The policy mandates that the single owner of numerous banks combine by merger or the establishment of a holding company, with the primary goal of the consolidation being to improve the capital structure and capture more market potential, hence increasing the bank's profitability. Later on, the challenge face by the merger and acquisition Banks are the success of two Banks by the degree of synergy realization. The synergy should be carried out and should ensure that both companies profit financially and non-financially, as well as having an impact on national growth and development. This study addressed that challenge by assessing a conceptual framework that measures of M&A performance from financial perspective, strategic perspective, and HRM perspective, in terms of synergy realization for the Merger and Acquisition of PT Bank Indo and PT Bank Jap into PT Bank Japindo, This study has achieved multiple outcomes by studying various academic publications as well as quantitative and qualitative data from a survey. On average, strategically similar institutions increase performance more than dissimilar organizations. In the case of PT Bank Indo and PT Bank Jap merger and acquisition into PT Bank Japindo, the financial performance as individual banks are similar. Thus, after the M&A their financial performance is stable and shows that it will eventually get bigger and stronger in the long term. However, the performance after M&A from the perspective of customer as shown in Customer Satisfaction Index is 70.48% which falls into poor Customer Satisfaction. Customer are mostly felt the relationship management and the range of products available are not enough. In addition, based on Customer Loyalty Index is 63% which falls into below average loyalty. Customer mostly don not want to try other products and services from bank. The overall human resource management evaluation, it was actually a success as employees from both individual banks support the merger, adapt well with the changes, satisfied with the job after merger, think the merger is success, and choose to stay in the company. Author then made recommendations based on the analysis and research undertaken in this final assignment for PT Bank Japindo that can be implemented after the merger to gain greater synergy such as Bank to embrace diversification and financial innovation from producing new products and services, management to keep the need of long-term cost-control initiatives, improve relationship management, evaluate on compensation and benefits for employees and establish clear communications about the business, learning opportunities, work distribution, and strong leadership.