ANALISIS DAMPAK MERGER HORISONTAL ANTAR BANK TERHADAP PROFITABILITAS DAN EFISIENSI INDUSTRI PERBANKAN INDONESIA

Abstract

239 Banks in Indonesia after Pakto 1988, that had a lot of internal structural problems, such as lack of assets, capital, human resources, technology, and limited operational link that made them fragile to economic fluctuation. To prevent banks from liquidation, a number of banks merger with other banks. Particularly, banks with less capital than one trillion rupiah, since according to theory, merger will increase profitability and efficiency. Thesis that titled “The analysis of Bank Horizontal Merger impact to Profitability and Efficiency of Indonesian Banking Industry” aimed to know how the bank merger impact on their profitability and efficiency. The object of this research were Government Bank and National Commercial Bank during 1995 – 2000. The tools of analysis that we used were Return on Equity, to count the profitability, Ordinary Least Square and Data Envelopment Analysis (DEA) to know the efficiency impact. We found that bank merger in Indonesia didn’t have positive effect to profitability, and didn’t increase the banking efficiency. The result of DEA didn’t find same result in each bank, depend on bank behaviour.