Merger or Consolidation: Weighing Insurance Industry Consolidation Options in Indonesia Case Study: Bb–Bo Insurance

Chusnul Chotimah; Hapzi Ali

doi:10.55927/modern.v5i3.42

Authors

Chusnul Chotimah Bhayangkara Jaya University Jakarta
Hapzi Ali Bhayangkara Jaya University Jakarta

DOI:

https://doi.org/10.55927/modern.v5i3.42

Keywords:

SWOT, TOWS Matrix, POJK 23/2023. Merger, Consolidation

Abstract

The consolidation of Indonesia’s insurance industry has become increasingly urgent following the issuance of POJK No. 23/2023, which requires insurance companies to maintain a minimum equity of IDR 250 billion by the end of 2026. In this context, BB Insurance and BO Insurance are considering consolidation through either merger or consolidation as a strategy to comply with regulatory requirements while strengthening competitiveness. This article analyzes both options using the SWOT and TOWS Matrix approaches, drawing on primary data (meeting minutes, internal presentations, consultant reports) and secondary data (OJK regulations, Company Law, and strategic management literature). The analysis reveals that mergers are superior in terms of time efficiency, brand continuity, and short-term regulatory compliance, whereas consolidations offer stronger institutional legitimacy and a new corporate identity in the long run. The TOWS Matrix formulation highlights SO, ST, WO, and WT strategies applicable to both options, emphasizing capital strengthening, product diversification, risk mitigation, and stakeholder support. The BB–BO shareholders’ meeting in April 2026 resolved to pursue a merger as the initial strategic step, pending validation by independent valuation from KJPP. Thus, the BB–BO merger not only ensures regulatory compliance but also enhances public trust, improves operational efficiency, and secures the sustainability of the company within Indonesia’s insurance industry

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