ASEAN Economic Community for financial sector will start in year 2020.
National banking sector needs to be well-prepared because investment from
ASEAN foreign banks will overflow freely in Indonesia. Currently, Indonesian
banks are not big enough in terms of total assets and credit interest is large
compared to other ASEAN countries, thus lowering the competitiveness of
Indonesia for AEC 2020. To keep up with other ASEAN banks, Ministry of stateowned enterprises construct a plan to create a holding company consist of four
state-owned banks (Bank Mandiri, BNI, BRI, and BTN). It is expected to reduce
NIM and increase efficiency. However, economists consider merger to be an
attractive alternative in the restructuring of the state-owned banks. This research
aims to determine which alternative is the most suitable, holding company or
merger of the state-owned banks, in order to face AEC 2020. Experts in banking
sector are given questionnaires in pairwise comparisons to examine which of the
criteria is the most important. The data is analyzed using Analytic Hierarchy
Process (AHP) method through Expert Choice software to determine the chosen
alternative. In conclusion, speed of the process is the most important criteria and
holding company is the best alternative.


Supervisor: Roy Sembel