Acquisition of an Indonesian Bank During the Pandemic by a Foreign Bank: The Perspective of a Top Management Member on the Case of Bukopin Bank

Foreign acquisitions have significantly impacted the dynamics of the Indonesian banking industry. However, the Covid-19 pandemic has presented unprecedented challenges to the Indonesian banking sector. As a result of the pandemic, several banks, including Bukopin Bank, have faced financial distress and liquidity crises. In response, the Financial Services Authority sought the assistance of South Korea's Kookmin Bank Financial Group (KBFG) to help revive Bukopin Bank. KBFG successfully fulfilled this role and subsequently acquired Bukopin Bank. This research aims to provide a comprehensive analysis of Bukopin Bank's financial health and the implications of its acquisition during the Covid-19 pandemic. Using a qualitative and descriptive approach, the perspective of a member of KB Bukopin's top management, the current President Commissioner of KB Bukopin, is examined. The findings highlight the positive impacts of the acquisition, such as the transformation of KB Bukopin into a stronger and healthier bank. This research suggests that mergers and acquisitions (M&As) have emerged as a favorable strategy for revitalizing struggling banks, surpassing alternatives such as bailouts.