PROFIL PERSAINGAN USAHA DALAM INDUSTRI PERBANKAN INDONESIA

Abstract

The Indonesian Banking industry is still in the recovery process, after severely hitted by the economic crisis during 1998-1999. The process has been characterized by restructuring and consolidation program, mainly through merger/acquitition supported or endorsed by Bank of Indonesia. This article aims to describe the competition profile of Indonesian banking Industry from the perspective of SCP approach. It is shown that, the market concentration of Indonesian banking industry still in the moderate level, although there is a strong indication of future merger/acquitition, which in turn would significantly raise the market concetration. The bank’s behaviour or conduct is best described by product and services which are highly diversified and diffrentiated (arm lengths basis). Those behaviour potentialy could violate the competition law, if there is a lack of supervision and monitoring from the banking authorities. The performance analysis show that there is no strong correlation between bank’s performance and its size and capital. It means that the banking policy must consider all perspectives of the banking stakeholder.