Investment Bank Competition in Indonesia

English

Abstract

We collect samples from the annual reports of 5 investment banks in Indonesia from 2000 to 2020 as data and samples from our research. We find that cost has the lowest effect compared to other indicators with a Optimized Weight of 1.8% and market making activity is the most influential indicator of competitiveness with a Optimized Weight of 22.5%. Market making provides the greatest attraction to clients in the investment bank business because in the market business it is the most important thing so that the ability of investment companies in market making to obtain capital for clients is the highest attraction because it can meet client needs related to capital. Costs correlated with reputation and costs in the investment bank business are almost the same from one bank to another so that the efficiency or ability of investment banks in providing the best prices does not provide a strong enough appeal to clients. This is also influenced by the investment bank market segment, which is a company segment that has large enough wealth assets so that costs are not too much of a problem for the client as long as it is rational and profitable.