THE STATE-OWNED ISLAMIC BANKS MERGER: EMPIRICAL EVIDENCE FROM INDONESIA

Abstract

The phenomenon of mergers among state-owned Islamic banks in Indonesia has an important role to strengthen and improve the efficiency of the existing state-owned Islamic banks. However, the success of a merger must be supported by many factors which include analysis of readiness, strategy and policies. Given this phenomenon, what is the impact and model of the merger of state-owned Islamic banks in Indonesia? This research method is qualitative with the type of library research. This study uses a conceptual and contextual approach. The research was conducted by analyzing theory and practice in depth about the impact and model of the merger of state-owned Islamic banks in Indonesia. Research data collection techniques using library research and interviews. The data analysis technique for this qualitative research is through the process of data collection, data reduction, data display, and conclusion drawing. This study concludes that the merger of state-owned Islamic banks in Indonesia is carried out to increase effectiveness and efficiency in encouraging the development of banking in Indonesia that is larger and has good competitiveness. This merger has proven to be the right step towards creating a bigger Islamic bank in Indonesia and internationally. The real impact of the merger model in Indonesia has been proven to be able to grow the MSME segment in an integrated ecosystem and value chain. The joining of three state-owned Islamic banks which turned into Bank Syariah Indonesia also had a positive impact on customers, employees and the people of Indonesia. The impact of mergers on the development of the sharia economy has also proven positive, because new entities born from the action of this merger model have resulted in the addition of asset values, resources and capital as drivers of economic growth both nationally and internationally.