Is the Merger Effective for Indonesian Islamic Banks?
DOI:
https://doi.org/10.22373/share.v13i2.22036Abstract
The low competitiveness of the Islamic banking sector has raised significant concerns within the government regarding the future viability of this financial industry in Indonesia. In response, a merger has been proposed as a strategic policy to strengthen and enhance the Islamic banking framework. This study seeks to assess the effectiveness of the merger strategy involving three state-owned Islamic banks—Bank Syariah Mandiri, BNI Syariah, and BRI Syariah—which have consolidated to form Bank Syariah Indonesia (BSI). The study employs a qualitative exploratory approach, utilizing analytical tools such as the Five Forces Model and SWOT analysis. The findings indicate that the merger strategy has been effective, as the management of the newly established entity has successfully implemented a range of initiatives to enhance the competitiveness of Islamic banking within the financial sector. These initiatives include product differentiation, innovation, a strong emphasis on service quality, institutional strengthening, and a focus on digital business development. The study concludes that the merger represents a positive step for the Indonesian Islamic banking sector. The strategies implemented by BSI may serve as a potential roadmap for other institutions aiming to enhance their competitive standing in the industry.
========================================================================================================
ABSTRAK – Efektifkah Merger pada Perbankan Syariah di Indonesia? Rendahnya daya saing sektor perbankan syariah menimbulkan kekhawatiran akan keberlangsungan industri keuangan ini di masa depan di Indonesia. Sebagai kebijakan strategis untuk memperkuat dan meningkatkan kerangka kerja perbankan syariah, pemerintah mengusulkan dilakukannya merger terhadap tiga bank syariah milik negara. Penelitian ini bertujuan untuk mengevaluasi efektivitas strategi merger Bank Syariah Mandiri, BNI Syariah, dan BRI Syariah menjadi Bank Syariah Indonesia (BSI). Penelitian ini menggunakan pendekatan kualitatif eksploratif dengan memanfaatkan Five Forces Model dan analisis SWOT sebagai alat analisis. Hasil penelitian menunjukkan efektivitas strategi merger dalam meningkatkan daya saing perbankan syariah. Manajemen BSI dinilai berhasil menerapkan serangkaian strategi pencapaian tujuan organisasi seperti melakukan diferensiasi produk, inovasi, orientasi pada kualitas layanan, penguatan kelembagaan, dan menseriusi pengembangan bisnis digital. Penelitian ini menyimpulkan bahwa strategi merger merupakan langkah positif bagi sektor perbankan syariah di Indonesia dalam meningkatkan daya saingnya di industri perbankan. Hasil ini dapat menjadi panduan potensial bagi lembaga keuangan syariah lain yang ingin menerapkan strategi serupa.
References
Alam, M. K., Rahman, M. M., Runy, M. K., Adedeji, B. S., & Hassan, M. F. (2021). The influences of Shariah governance mechanisms on Islamic banks' performance and Shariah compliance quality. Asian Journal of Accounting Research, 7(1), 2–16. https://doi.org/10.1108/AJAR-11-2020-0112
Alhusain, A. S. (2021). Bank Syariah Indonesia: Tantangan dan strategi dalam mendorong perekonomian nasional. Info Singkat: Kajian Singkat Terhadap Isu Aktual dan Strategis Bidang Ekonomi Dan Kebijakan Publik, 8(3), 19–24.
Arif, M. N. R. A., Masruroh, A., Ihsan, D. N., & Rahmawati, Y. (2020). The alternative strategies for accelerating Islamic banking growth: Mergers, spin-offs, acquisitions, and conversions. Al-Ulum, 20(1), 24–37. https://doi.org/10.30603/au.v20i1.1171
Asian_Banker. (2021). The largest banks rankings. https://www.theasian banker.com/ab500/2018-2019/largest-islamic-banks
Atikah, I., Maimunah, & Zainuddin, F. (2021). Penguatan merger bank syariah BUMN dan dampaknya dalam stabilitas perekonomian negara. Salam: Jurnal Sosial dan Budaya Syar-i, 8(2), 515–532. https://doi.org/10.15408/sjsbs.v8i2.19896
Badan Kebijakan Fiskal. (2021). Tinjauan ekonomi, keuangan dan fiskal: Menjaga optimisme pemulihan ekonomi. (edisi 1 2021). Jakarta: Kementerian Keuangan.
Beccalli, E., & Frantz, P. (2009). M&A operations and performance in banking. Journal of Financial Services Research, 36(2), 1–33. https://doi.org/10.1007/s10693-009-0071-3
BMI. (2016). Tentang muamalat: Profil bank muamalat. https://www.bankmuamalat.co.id/profil-bank-muamalat
BSI. (2021). Informasi perseroan: Visi & misi. PT Bank Syariah Indonesia, Tbk.
Calomiris, C., & Karceski, J. (2000). Is the bank merger wave of the 1990s efficient? Lessons from nine case studies. Cambridge: University of Chicago Press.
Cartwright, S., & Cooper, C. L. (1995). Managing mergers acquisitions and strategic alliances. London: Routledge. https://doi.org/10.4324/ 9780080510903
David, F. R. (2006). Strategic management. Florence, SC: Prentice Hall.
Dionne, M. (2019). More regional banks may merge to meet tech challenges. American Banker. https://www.americanbanker.com/opinion/regional-banks-must-merge-to-meet-tech-challenges
Ekadjaja, M., Siswanto, H. P., & Rorlen, R. (2021). The impact of mergers on the performance of conventional banks in Indonesia. Advances in Economics, Business and Management Research, 63, 448–452. https://doi.org/10.2991/aebmr.k.210930.081
Ghozali, M., Kamri, N. B., & Khafid, M. A. Z. (2022). The merger of Indonesian Islamic banks: Impact on the Islamic economy development. Al-Iktisab: Journal of Islamic Economic Law, 6(1), 23–39. https://doi.org/10.21111/al-iktisab.v6i1.7551
Gunardi, H. (2021). Peran lembaga keuangan syariah dan pemerataan ekonomi umat. Presented at Indonesia Islamic Economic Forum, Jakarta, 22 January 2021.
Harada, K., & Ito, T. (2008). Did mergers help Japanese mega-banks avoid failure? Analysis of the distance to default of banks. Journal of the Japanese and International Economies, 25(1), 1–22. https://doi.org/10.1016/j.jjie.2010.09.001
Hasan, M., & Dridi, J. (2011). The effects of the global crisis on Islamic and conventional banks: A comparative study. Journal of International Commerce, Economics and Policy, 2(02), 163–200. https://doi.org/10.1142/S1793993311000270
Huda, A. N. (2012). The development of Islamic financing scheme for SMEs in a developing country: The Indonesian case. Procedia - Social and Behavioral Sciences, 52, 179–186. https://doi.org/10.1016/j.sbspro. 2012.09.454
Hussain, H., Khatoon, S., & Sarwar, Z. (2019). Competitive strategies of Islamic banks: A case of Pakistan. Journal of Philosophy, Culture and Religion, 46, 12–23.
Ibrahim, A. (2023). Metodologi Penelitian Ekonomi dan Bisnis Islam - Edisi Revisi. Q. Aini Ed. Jakarta: Bumi Aksara
IMF. (2020). World Economic Outlook: A long and difficult ascent. Washington, DC: International Monetary Fund.
Isman, A. F., Rusanti, E., & Makatita, A. R. (2023). Development aspects of post-merger Islamic banks: A systematic literature review. Perbanas Journal of Islamic Economics and Business, 3(2), 85–94. https://doi.org/10.56174/pjieb.v3i2.124
Kementerian Perencanaan Pembangunan Nasional. (2019). Masterplan ekonomi syariah Indonesia 2019-2024. Jakarta: Kementerian Perencanaan Pembangunan Nasional.
Kholili, I. (2023). Analysis of the application of Sharia principles in BRI Syariah, BNI Syariah, Mandiri and Bank Muamalat. International Journal of Economic Research and Financial Accounting (IJERFA), 1(3). https://doi.org/10.55227/ijerfa.v1i3.34
Kodrat. (2019). Konsep lima kekuatan Porter. Jakarta: PT. Binarupa Aksara.
KNEKS. (2019). Kajian konversi, merger, holding dan pembentukan bank BUMN syariah: Sebagai bagian dari program penguatan bank syariah. Jakarta: Komite Nasional Keuangan Syariah.
Kress, J. K. (2020). Modernizing bank merger review. Yale Journal on Regulation, 37(2), 435–498.
Kristiyana, H. (2021). Launching roadmap pengembangan perbankan syariah Indonesia 2020 - 2025. Presented at Otoritas Jasa Keuangan, Jakarta, 25 February 2021.
Macey, J. R., & Miller, G. P. (1997). Banking law and regulation. London: Little Brown Company.
Mailinda, R., Ibrahim, A., & Zainul, Z. R. (2018). Pengaruh Leverage, Likuiditas dan Ukuran Perusahaan terhadap Profitabilitas pada BNI Syariah di Indonesia Periode 2015-2017. Jurnal Ilmiah Mahasiswa Ekonomi Manajemen, 3(4). https://doi.org/10.24815/jimen.v3i4.9794
Mardini, R., Pramono, I. P., Hartanto, R., Avicenna, F. M., Aranni, I., & Adinda, R. (2022). Maqashid Sharia index and Indonesian Sharia banking efficiency: Pre-merger and post-merger. Kajian Akuntansi, 23(2), 190–205. https://doi.org/10.29313/ka.v23i2.10183
Mariana, & Ibrahim, A. (2022). Determinan Cash Holding pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia. HEI EMA: Jurnal Riset Hukum, Ekonomi Islam, Ekonomi, Manajemen dan Akuntansi, 1(1).
Marimin, A., Romdhoni, A. H., & Fitria, T. N. (2017). Perkembangan bank syariah di Indonesia. Jurnal Ilmiah Ekonomi Islam, 1(2), 75–87. http://dx.doi.org/10.29040/jiei.v1i02.30
Mehjabeen, L. (2018). Assessing attractiveness of banking industry of Bangladesh by applying Porter’s 5 forces model. International Journal of Business and Management Future, 2(1), 55–62. https://doi.org/10.46281/ijbmf.v2i1.238
Miftah, K. (2020). Merger bank syariah dan implikasinya bagi industri perbankan syariah Indonesia. Presented at Diskusi Kontemporer KSEI Sharia Economic Forum Fakultas Ekonomi dan Bisnis Universitas Gadjah Mada, Yogyakarta, 7 November 2020.
Nizar, M. A., & Nasir, M. (2020). Strengthening Sharia banking through merger or consolidation. Munich Personal RePEc Archive Paper, 97964, 1–46.
Nofinawati. (2015). Perkembangan perbankan syariah di Indonesia. Jurnal Ilmiah Syariah, 14(2), 168–183. http://dx.doi.org/10.31958/juris.v14i2.305
Noor, M. A. N. M., & Ahmad, N. H. B. (2012). The determinants of Islamic banks’ efficiency changes: Empirical evidence from the world banking sectors. Global Business Review, 13(2), 179–200. https://doi.org/10.1177/097215091201300201
Nugroho, L. (2023). Maslahah of Islamic banking merger discourses (Indonesia case). Afro Eurasian Studies, 12(2), 14–29. https://doi.org/10.33722/afes.1280330
OJK. (2020a). Roadmap keuangan berkelanjutan di Indonesia. Jakarta: Otoritas Jasa Keuangan.
OJK. (2020b). Roadmap pengembangan perbankan syariah Indonesia 2020-2025. Jakarta: Otoritas Jasa Keuangan.
OJK. (2020c). Sustainable finance roadmap phase II (2021 - 2025): The future of finance. Jakarta: Otoritas Jasa Keuangan.
Organisation for Economic Co-operation and Development. (2020). OECD economic outlook, interim report strengthening the recovery: The need for speed. Paris: OECD Publishing.
Porter, M. E. (1979). Strategic planning: How competitive forces shape strategy. Harvard Business Review, 57(2), 137–145.
Prasetyo, R., Abdala, U. A., & Nafi, M. H. K. (2023). Comparisonal analysis of financial performance between sharia and conventional banks (case study on BRI and BRI Sharia bank). Proceedings of the 2nd International Conference on Halal Development (ICHAD 2021), Malang, Indonesia, 5 October 2021, 87–91.
Pusat Kajian Anggaran Badan Keahlian – Setjen DPR RI. (2021). Analisis RKP dan pembicaraan pendahuluan APBN (Outlook perekonomian 2021: Optimisme penguatan fundamental ekonomi di tengah ketidakpastian). Dewan Perwakilan Rakyat Republik Indonesia.
Pusat Kependudukan LIPI, Ketenagakerjaan, P. P. dan P. K., & Lembaga Demografi Universitas Indonesia. (2020). Dampak darurat virus corona terhadap tenaga kerja di Indonesia.
Rachdi, H., & Mokni, R. B. S. (2023). Assessing the bank profitability in the MENA region: A comparative analysis between conventional and Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 7(3), 305–332. https://doi.org/10.1108/IMEFM-03-2013-0031
Ramadhanayanti, W. P., Purwaningrum, S., & Natalina, A. (2022). Analisis Islamicity performance index pada bank syariah. Jurnal Akuntansi dan Manajemen Bisnis, 2(2), 34–40. https://doi.org/10.56127/jaman.v2i2.179
Rizvi, S. A. R., Narayan, P. K., Sakti, A., & Syarifuddin, F. (2020). Role of Islamic banks in Indonesian banking industry: An empirical exploration. Pacific-Basin Finance Journal, 62, 101117. https://doi.org/10.1016/j.pacfin.2019.02.002
Rosmiati, I., Ropei, A., Ramadhani, F., & Suharto, S. (2023). Merger and its impact on strengthening the development of Sharia banks in Indonesia. International Conference on Islamic Economic (ICIE), 2(1), 66–79. https://doi.org/10.58223/icie.v2i1.202
Salaam Gateway. (2023). The state of the global Islamic economy 2023/24 report. Abu Dhabi: Salaam Gateway.
Sari, N., Ibrahim, A., Muzammil, M., & Muksal, M. (2024). Managing Financing Risk of Islamic Banking Products in Indonesia: A Value at Risk Approach. Jurnal Ilmiah Islam Futura, 24(1), 213-240. DOI:http://dx.doi.org/10.22373/jiif.v24i1.17693
Sufian, F., & Majid, M. Z. A. (2007). Bank mergers performance and the determinants of Singaporean banks’ efficiency: An application of two-stage banking models. Gadjah Mada International Journal of Business, 9(1), 19–39. https://doi.org/10.22146/gamaijb.5602
Suhendra, I., & Ronaldo, E. (2017). Pengaruh intermediasi perbankan terhadap pertumbuhan ekonomi Indonesia. Tirtayasa Ekonomika, 12(1), 169–195.
Syamlan, Y. T., Wahyuni, S., & Sudiharto, L. (2023). Concentration level and market power of Islamic bank industry: Analysis of pre and post Bank Syariah Indonesia merger. Journal of Islamic Economic and Business Research, 3(2), 138–160. https://doi.org/10.18196/jiebr.v3i2.189
Tyas, A. A., & Rusydiana, A. S. (2021). The pre-merger efficiency of banks: Evidence in Indonesia state-owned Islamic banks. JEBIS: Jurnal Ekonomi dan Bisnis Islam, 7(1), 1–13. https://doi.org/10.20473/jebis.v7i1.23319
Ullah, M., & Seman, J. A. (2018). Merger and acquisition in banking sector: A review of the literature. Munich Personal RePEc Archive Paper, 108575, 1–23.
Utami, A. D., Risfandy, T., & Rahardjoputri, R. (2022). Islamic banks' merger: The case of Bank Syariah Indonesia. International Journal of Monetary Economics and Finance, 15(3), 201–212. https://doi.org/10.1504/IJMEF.2022.126904
Wirdayanti, Y. N. (2020). Merger bank syariah: Prospek dan arah gerak ekosistem keuangan Islam di Indonesia.
World_Bank. (2021). Global economic prospects, January 2021. The World Bank.
Worldometer. (2021). Covid-19 coronavirus pandemic by country (Indonesia): Last updated: May 25, 2020, 23:48 GMT. https://www.worldometers.info/coronavirus/
Yusgiantoro, I. B., Wirdiyanti, R., & Harjanti, A. D. (2020). How do banks fare after merger and acquisition? Evidence from Indonesia. Otoritas Jasa Keuangan Working Paper, 20(10), 1–23.
Yusuf, M., & Ichsan, R. N. (2021). Analysis of banking performance in the aftermath of the merger of Bank Syariah Indonesia in COVID-19. International Journal of Science, Technology & Management, 2(2), 472–478. https://doi.org/10.46729/ijstm.v2i2.182
Downloads
Additional Files
Published
Issue
Section
License
SHARE allows the author(s) to hold the copyright and to retain the publishing rights without restrictions. Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC-BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work
