Merger and Acquisition Policy Implementation on National Private Banking in Indonesia 2007-2011

Lerry Alfani, Irvan Rustandar, Hery Mulyanto

Abstract: Economic crisis that occurred in European regional in 2007 and slowing recovery has negative impact for industries in Asian countries such as China, Malaysia and Indonesia especially in banking industry. Some banking in Indonesia crisis and many difficulties which led to banks collapse. Another impact have seen with number of banks that unhealthy which must be liquidated because it can not be saved again. Merger and acquisition policy driven by Bank Indonesia through single presence policy that national banks merged to become more efficient, more robust in capital so that has strong competitiveness internationally. This strategy considered able to bring change toward better. Crash condition policies and security threats that occurred on 2007-2010 worth further highlighted in this paper how merger and acquisition process on banking which carry out the policy with motives and interests by literature study.

Keywords: Merger and acquisition, national private banking