The Impact of the Merger between PT BPRS Salman Al Salaam and PT BPRS Al Salaam on the Rate of Financing Problems

Abstract

Based on Law Number 40 of 2007 on Limited Liability Company, the merger between PT BPRS Salman and BPRS Al Salaam has not yet fully comply with the rules. Despite that case, the shareholders and the Bank Indonesia anticipated it by adjusting the merger minutes with the applicable rules. The level of financing problems in BPRS Al Salaam branch of Bandung after the implementation of the merger was plummeted from 70% to 1.29% in December 2013. This was caused by two factors. First, the HR was increased; and second, their performance improved. The impact of the implementation of the merger of the two banks on the level of financing problems is positive. They have become capable of managing liquidity risk to be more flexible, lowering the NPF ratio (financing problems) significantly, and achieving excellence in the competitive power market. It then enlarged profit margin or financing channeled SRB Al Salaam Branch Bandung.