Analysis of the Impact of Business Combination on Financial Performance: A Case Study of PT Indosat Ooredoo Hutchison Tbk Post-Merger

Abstract

This study aims to analyze the impact of the business combination strategy on the financial performance of PT Indosat Ooredoo Hutchison Tbk following its merger with PT Hutchison 3 Indonesia, which became effective in 2022. The research adopts a qualitative descriptive approach using secondary data in the form of the company’s annual reports for the period 2020 to 2024. The data were obtained from official financial reports published through the Indonesia Stock Exchange website and the company’s official website. Financial performance was analyzed using four key ratios: Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), and Debt to Equity Ratio (DER), classified according to financial ratio analysis criteria. The findings indicate that after the merger, the company experienced a significant improvement in profitability and capital structure efficiency, as reflected by consistently strong ROA, ROE, and NPM values, and a DER that indicates an improved capital structure. Thus, the implemented business combination strategy has had a positive impact on the company’s financial performance.