Proceedings of the First International Conference of Economics, Business & Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia

Research Article

Analysis of Strategic Group of State-Owned Banks VS Private-Owned Banks: Application of Game Theory

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  • @INPROCEEDINGS{10.4108/eai.1-10-2020.2305003,
        author={Ayi  Ahadiat and Wan Abbas Zakaria and Ribhan  Ribhan and Toto  Gunarto and Fajrin Satria Dwi Kesumah},
        title={Analysis of Strategic Group of State-Owned Banks VS Private-Owned Banks: Application of Game Theory},
        proceedings={Proceedings of the First International Conference of Economics, Business \& Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2021},
        month={4},
        keywords={state-owned banks game theory banking strategy firm performance},
        doi={10.4108/eai.1-10-2020.2305003}
    }
    
  • Ayi Ahadiat
    Wan Abbas Zakaria
    Ribhan Ribhan
    Toto Gunarto
    Fajrin Satria Dwi Kesumah
    Year: 2021
    Analysis of Strategic Group of State-Owned Banks VS Private-Owned Banks: Application of Game Theory
    ICEBE
    EAI
    DOI: 10.4108/eai.1-10-2020.2305003
Ayi Ahadiat1,*, Wan Abbas Zakaria1, Ribhan Ribhan1, Toto Gunarto1, Fajrin Satria Dwi Kesumah1
  • 1: Universitas Lampung
*Contact email: ayi.ahadiat@feb.unila.ac.id

Abstract

The two largest strategic groups of Indonesia Banking show an intense competition recently. While BCA is the largest market capitalization in Indonesian stock market, state-owned banks should set the appropriate strategies to capture larger market. The aim of this study is to analyze the strategies from the banking strategic groups in Indonesia, particularly strategy in improving the third party funds and total credit, and in which state-owned banks is proxied by BRI, and private-owned banks is represented by BCA. The method applied in this study is by implementing game theory approach to identify the best strategies based on other players’ movement. The findings suggest that Pure Strategy Nash Equilibrium 1 of Game 1 is to increase the deposit segment for each bank and Pure Strategy Nash Equilibrium 2 in Game 2 suggests to focus more on increasing credits on the sector of micro business.