SIMULATION OF BANK BUSINESS GROUPS (KUB) AND THE CREATION OF SYNERGY VALUES: A CASE STUDY OF BANK BJB WITH BANK BENGKULU

• Main Author: Slamet Raharja, Budiman
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/71176
• Institution: Institut Teknologi Bandung

The increasingly fierce level of competition in the banking industry has prompted the government to formulate policies to strengthen the capabilities and competitiveness of Indonesian banking. In supporting the Refocusing BPD Transformation, the Financial Services Authority (OJK) issued the latest policy to strengthen banking capital through POJK Number 12/POJK.03/2020 concerning bank consolidation. The intended policy encourages companies to look at various possible strategies, including consolidation efforts, as one of the solutions that are expected to maximize company performance and fulfill their core capital. This final project is structured to identify the possibility of forming a bank business group (KUB) as an alternative consolidation strategy for regional development banks (BPD), especially Bank BJB and Bank Bengkulu. Furthermore, an explorative case study looks at possible strategic steps and impacts on the process of forming a Bank Business Group (KUB), namely conducting internal and external analyses using VRIO, PESTLE, and Porter's five forces analysis and then conducting a SWOT analysis. In addition, stock valuation is also carried out, as is projecting financial performance by applying two scenarios, which are then carried out as a feasibility analysis by calculating capital budgeting analysis and financial analysis. The results of the analysis on the final project show that the consolidation strategy with the Bank Business Group Scheme (KUB) can be an alternative for the Blood Development Bank (BPD) to meet the core capital problem and maximize its performance. Based on the feasibility analysis, it was determined that the NPV value was greater than zero, the IRR was greater than the WACC, and the payback period was 10 to 11 years. Furthermore, the consolidated results performed better in terms of financial ratios. The results of the strategic fit analysis show the potential for synergy, especially in the aspects of business growth potential, office network, product features, and digital banking. This is in line with the valuation results, where a positive synergy value is obtained from the difference in equity of IDR 1.4 trillion.