Merger And Sharia Banking Market Concentration in Indonesia

Business competition is encountering significant challenges, as demonstrated by the growth in performance and the evolving nature of banks. This research aims to determine the impact of corporate merger actions and changes in the concentration of the Sharia banking market in Indonesia after the merger. The theory used is mergers and company concentration. The research method used is qualitative research from a theoretical perspective, journals, direct quotations on mergers, and contextual books. The results show that merger has a positive influence. The rate concentration of Indonesia Sharia market is 79.62%, which indicates that Sharia banking in Indonesia by the big 4 banks. Bank-Syariah-Indonesia, Bank-Muamalat-Indonesia, Bank-Aceh-Syariah, and Bank-Kepri-Syariah. Based on the calculation of total assets, there is a tight Oligopoly market condition where competition between companies is very tight and intense. The research results show that in Indonesia's Sharia industrial market, only a few companies dominate the market, and they significantly influence product prices and quality. There are high barriers to market entry due to high costs and complex technology.