The banking sector is the pulse of the Indonesian economy because this is

where financial transaction traffic occurs to meet the rapidly developing needs of the
people's economy. In conducting the banking business, it takes parties who have ties to
one another, including the public (customers). Customers have a role in the banking
world because they are one of the main sources of funds. The bank itself is a business
entity that collects funds from the public in the form of deposits which channel it back in
credit or other forms. From that understanding itself it is seen that the public or the
customer is the most important part in the banking business. The birth of Law No.7 of
1992 regarding banking, led Indonesia to two banking systems namely the conventional
bank system and the Islamic bank system. Conventional banks have a strong aroma in
the pursuit of material benefits with the interest system, so they are not familiar with the
losses of other parties. While Islamic banks are not much different from conventional
banks as intermediary institutions, which collect funds from the community and channel
it back but emphasize the existence of Ta'wun (Please help in the joys and sorrows of
partnerships), so there is a principle of profit sharing known as "profit and loss sharing ".
To run a banking business, the most common agreement is the standard agreement /
standard clause. In a standard agreement, the bank unilaterally makes terms and
conditions that must be fully followed by the customer who submitted the application
and has binding provisions. Where usually in the agreement the customer is not in a
position of bargaining which is advantageous because the agreement forms are not
made in front of both parties but have been pre-existing by one party in this case the
bank. In essence, for hyqanya customers are given two choices, namely accept or
reject (Take it or Leave it).

Following are a few profiles of BNP banks and Danamon banks

BBNP

Bank Nusantara Parahyangan Tbk (Bank BNP) (BBNP) was established January
18, 1972 under the name PT Bank Pasar Karya Parahyangan. Bank BNP's head office
is located at Jalan. Ir. H. Juanda No. 95 Bandung. At present, Bank BNP has 15 branch
offices, 47 sub-branches and cash offices, 1 mobile cash car, 1 non-operational
functional office, 4 operational functional offices.
 Shareholders who own 5% or more of Bank Nusantara Parahyangan Tbk shares
include: Acom Co., Ltd (controlling) (66.15%), The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(controlling) (9.35%) and PT Hermawan Sentral Investama (6.46%).

Bank BNP began operating as a Commercial Bank based on the Decree of the
Minister of Finance on July 3, 1989. Furthermore, based on the Decree of the Board of
Directors of Bank Indonesia on August 5, 1994, Bank BNP was upgraded to become a
Foreign Exchange Bank

On December 14, 2000, BBNP obtained an effective statement from Bapepam-

LK to conduct an Initial Public Offering of BBNP (IPO) to the public of 50,000,000 with a
nominal value of Rp500 per share at an offering price of Rp525 per share and
accompanied by 20,000 .000 Series I warrants and implementation period from July 10
2001 to January 9, 2004 with an exercise price of Rp. 600 per share. These Shares and
Series I Warrants were listed on the Indonesia Stock Exchange (IDX) on January 10,
2001.

Bank BNP has unfavorable corporate fundamentals, so it is shaken by the face of

intense banking competition, given the uncertainty of global economic conditions.

Danamon Bank

Bank Danamon was founded on July 16, 1956 under the name PT Bank Kopra
Indonesia. In 1976 the name of the bank was changed to PT Bank Danamon Indonesia.
This bank became the first bank to spearhead foreign exchange by becoming the first
foreign exchange bank in Indonesia in 1976 and listed on the stock exchange since
1989

In 1997, as a result of the financial crisis in Asia, Bank Danamon experienced

liquidity problems and finally the Government was placed under the supervision of the
National Bank Restructuring Agency (IBRA) as a bank that was taken over by the
Government (Bank Take Over or BTO). In 1999, the Government through IBRA
recapitalized Bank Danamon in the amount of Rp 32 billion in the form of Government
Bonds (Government Bonds). In the same year, several BTO banks were eventually
merged into one with Bank Danamon as part of the IBRA restructuring plan

In 2000, Bank Danamon expanded again by becoming the main bank in the
merger of 8 other BTO banks. It was at this time that Bank Danamon began to emerge
as one of the economic pillars in Indonesia.

In the following 3 years, Bank Danamon underwent a major restructuring starting

from the fields of management, human resources, organization, information systems,
articles of association and company logo. This endeavor has been fruitful in forming the
foundation and infrastructure for Bank Danamon in its aim to achieve maximum growth
based on work transparency, responsibility to the community, integrity as one of the
economic pillars in Indonesia and professional attitude in carrying out their duties as
one of the banks. largest in Indonesia (or better known as TRIP).

On December 26, 2017, the largest Japanese financial group, Mitsubishi UFJ
Financial Group (MUFG), through its banking entity, MUFG Bank, announced plans to
acquire majority ownership of Bank Danamon through a conditional sale and purchase
agreement with Asia Financial (Indonesia) and other affiliated entities The acquisition
has been completed to reach 19.9% on December 29, 2017, and up to 40.0% on
August 3, 2018.

MUFG, aka the bank from Japan, sees good economic potential judged by strong
fundamental conditions, so MUFG is very interested in enlarging the portion of shares
owned to be even greater through the process of acquiring the archipelago bank
parahyangan (BNP).

On April 25, 2019, Bank Danamon announced that the Financial Services
Authority had given an approval for a merger between Bank Danamon and Bank
Nusantara Parahyangan. On April 29, 2019, MUFG Bank announced that it had
increased its share ownership in Bank Danamon from 40.0% to 94.0% Merger between
Bank Danamon and Bank Nusantara Parahyangan and then effective on May 1, 2019.
 The purpose of MUFG merger with bank BNP through danamon banks is to
increase ownership of danamon from 40% to 94%, in addition, the fundamentals of
book bank III become stronger because of expanding market share, expanding branch
networks and increasing operational efficiency and increasing trust society over
fattening assets. Because the bank's business is a business that relies on trust,
fattening assets will increase public trust in this book III bank.

But interestingly, the merger of Danamon and Bank BNN merged investors to
enter the company, as seen from the number of transactions that continued to decline in
the stock market and share prices that continued to decline sharply.

Some analysts said that the decline in Danamon's bank stock prices was caused
by several factors, one of which was because public ownership of the BDMN-coded
shares dropped sharply to only 5%. This has caused investor interest to buy bank book
III shares also declined. Coupled with the global uncertainty that helped reduce the
price of this stock even though the fundamentals of the BDMN company are still quite
good and have good prospects.