ESTIMATING THE SYNERGY VALUE OF MERGER VALUATION BETWEEN BANK SYARIAH INDONESIA (BSI) AND SHARIA BUSINESS UNIT OF BANK TABUNGAN NEGARA (BTN) FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By DALIA AYU FITRI HIDAYAT Student ID: 29122071 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG January 2024 i ABSTRACT ESTIMATING THE SYNERGY VALUE FROM MERGER VALUATION BETWEEN BANK SYARIAH INDONESIA (BSI) AND SHARIA BUSINESS UNIT OF BANK TABUNGAN NEGARA (BTN) By Dalia Ayu Fitri Hidayat Student ID: 29122071 (Master of Business Administration Program) The merger and acquisition of banking industry are a very important issue in Indonesia. Similar to other banking mergers, the mergers will benefit Bank Syariah Indonesia (BSI), Sharia Business Unit of Bank Tabungan Negara (BTN), and all company stakeholders. Based on the This study assessing Bank Syariah Indonesia’s current business environment, determine company’s valuation. This study analyses the environmental aspects of Bank Syariah Indonesia (BSI), both external and internal. Research methodology using quantitative and case study design. This study collects secondary data through various sources. This study computes valuation using Free Cash Flow to Firm (FCFF) and the Discounted Cash Flow (DCF) method. The result show that the synergy value of merger valuation between Bank Syariah Indonesia (BSI) and Sharia Business Unit of Bank Tabungan Negara (BTN) is Rp.98,333,621 (in Million Rupiah). By calculating the synergy value of Bank Syariah Indonesia (BSI) and Sharia Business Unit of Bank Tabungan Negara (BTN) merger, management could get additional data from preparation of merger and acquisition process. Keywords: valuation; synergy value; discounted cash flow; mergers. ii ABSTRAK ESTIMASI NILAI SINERGI DARI VALUASI MERGER BANK SYARIAH INDONESIA (BSI) DAN UNIT USAHA SYARIAH BANK TABUNGAN NEGARA (BTN) Oleh Dalia Ayu Fitri Hidayat 29122071 (Program Studi Magister Administrasi Bisnis) Merger dan akuisisi industri perbankan adalah isu yang sangat penting di Indonesia. Serupa dengan merger bank lainnya, merger ini akan menguntungkan Bank Syariah Indonesia (BSI), Unit Usaha Syariah Bank Tabungan Negara (BTN), dan semua pemangku kepentingan perusahaan. Studi ini mengevaluasi lingkungan bisnis Bank Syariah Indonesia (BSI), menentukan valuasi dari merger BSI dan Unit Usaha Syariah (UUS) BTN. Metodologi penelitian menggunakan studi kuantitatif dan studi kasus. Studi ini mengumpulkan data sekunder dari berbagai sumber. Studi ini menghitung valuasi menggunakan Free Cash Flow to Firm (FCFF) dan metode Discounted Cash Flow (DCF). Hasil valuasi merger antara Bank Syariah Indonesia (BSI) dan Unit Usaha Syariah Bank Tabungan Negara (BTN) adalah Rp98,333,621 (dalam jutaan rupiah). Keywords: valuasi; nilai sinergi; nilai arus kas; merger. iii VALIDATION PAGE ESTIMATING THE SYNERGY VALUE OF MERGER VALUATION BETWEEN BANK SYARIAH INDONESIA (BSI) AND SHARIA BUSINESS UNIT OF BANK TABUNGAN NEGARA (BTN) VALIDATION PAGE By Dalia Ayu Fitri Hidayat Student ID: 29122071 Master of Business Administration Program Institut Teknologi Bandung Approved Date: 4 March 2024 iv DECLARATION OF NON PLAGIARISM I understand that Plagiarism is wrong, a breach of academic integrity,and against Program, School, and University’s Policy and Regulation. I declare that all material in this Final Project is original, my own work, and does not involve plagiarism. I have not allowed, and will not allow, another to copy my work with the intention of submitting it as her or his own work. Name Dalia Ayu Fitri Hidayat Student ID 29122071 Signed Date 1 February 2024 v FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institut of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceed upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Hidayat, Dalia. (2024): Estimating the Synergy Value of Merger Valuation between Bank Syariah Indonesia (BSI) and Sharia Business Unit (SBU) Bank Tabungan Negara (BTN), Masters’ Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. vi DECLARATIONPAGE This final project is dedicated to my parents, brothers and my beloved family who always support me. vii ACKNOWLEDGEMENTS First of all, I would like to express my deepest gratitude to Allah SWT for providing convenience, health, and opportunity to the author so that she can complete this Final Project on time and without any obstacles to the completion process. It is a very extraordinary thing to have the opportunity to continue studying in a master degree program at one of the best universities in Indonesia. This Final Project is one of the requirements in fulfilling to complete my study program to get a Master of Business Administration at the School of Business and Management Institute of Technology Bandung. I learned many valuable lessons and experiences during my MBA study. Of course, this Final Project would not have been completed properly without the support of the people around me. So that allow me to express my deepest gratitude to: 1. My parents and family who always provide support and prayers so that this Final Project can be completed. 2. Mr. Oktofa Yudha Sudrajad S.T., M.S.M., Ph.D. as a supervisor on my Final Project who has provided input and direction during the final project completion process. 3. All lecturers and academic teams of SBM ITB for the knowledge and knowledge provided during my education program at SBM ITB. 4. All of my friends in YP67 C of MBA ITB who have fought together in completing 2 years of study. 5. And others that I certainly can’t mention one by one. Finally, hopefully this Final Project can provide many benefits for its readers and make a maximum contribution to the world of education, companies and mining in Indonesia. Bandung, 1 February 2024 Dalia Ayu Fitri Hidayat viii TABLE OF CONTENTS ABSTRACT…………… ...................................................................................... i VALIDATION PAGE ........................................................................................ iii DECLARATION OF NON P LAGIARISM .................................................... iv FINAL PROJECT GUIDANCE .......................................................................... v ACKNOWLEDGEMENTS ...............................................................................