JURNAL Moneter: Jurnal Akuntansi dan Keuangan Volume 8 No. 1 April 2021 P-ISSN 2355-2700 E-ISSN 2550-0139 http://ejournal.bsi.ac.id/ejurnal/index.php/moneter 90 Merger And Innovation To Improve Organization’s Performance In Indonesia To Fight Industrial Revolution 4.0: Case Study Merger Bank BTPN Diana Tambunan 1 Sugeng Wahyudi 2 Harjum Muharam 3 1 Administrasi Bisnis, Universitas Bina Sarana Informatika 2,3 FEB Universitas Diponegoro, Semarang e-mail: 1 diana.dtb@bsi.ac.id, 2 sug_w@yahoo.com, 3 hardjum@gmail.com Diterima 13-03-2021 Direvisi 14-03-2021 Disetujui 15-03-2021 Abstract -An organization will conduct a merger strategy with companies that have strong technology to overcome the challenges of industrial transformation 4.0. In 2018 Bank BTPN merged with SMBCI with the hope of strengthening banking technology so that it could serve customers of various segments with various services throughout Indonesia.This research is a case study conducted at Bank BTPN which contributes to prove whether with merger, Bank BTPN's financial performance has improved. The method used is ratio analysis by comparing the financial performance of Bank BTPN before merger and after merger and the data obtained from the 2019 Annual Report and published financial statement 2020. The results showed that the merger strategy made Bank BTPN able to use assets, funding, and technology owned by SCMBI in innovating the digital banking business of Jenius banking products, BTPN Wow! and other banking products so that the post merger of Bank BTPN's financial performance has increased rapidly both in terms of assets to be the ninth largest in Indonesia, as well as 41% increase in net profit to Rp 2.9 trillion in 2019. This research proposes the concept of business model where merged bank should take five actions: 1) Innovation Business Digital Bangking, (2) Expansion of Customer Segmentation, (3) Diversification of Products/Market, (4) Quality of Human Resources, (5)Corporate Governance. Keywords: Industry 4.0, merger, innovation, digital banking INTRODUCTION The Fourth Industrial Revolution (IR 4.0) is a phenomenon that cannot be avoided by all nations of the world.The presence of fast internet and smart phones has triggered tremendous changes that have taken place in many countries. The Government of Indonesia under the Ministry of Industry of the Republic of Indonesia on April 4, 2018 launching Making Indonesia 4.0 as an integrated roadmap to implement a number of strategies in the face of the industrial revolution 4.0 era.The application of industry 4.0 is expected to bring Indonesia into the top 10 economies in 2030. Making Indonesia 4.0 has an extraordinary impact on various industries, including the banking and financial industries, giving birth to a new business model with a digital basis that produces high-quality and high-efficiency production (Kemenperin, 2018). In the era of digitalization, many companies invest in the Internet of Things so that the production process, machinery, employees and products produced can be integrated into one integrated network with data collection, data analysis, evaluation of company development and improvement of company performance (Nagy, Oláh, Erdei, Mate, & Popp, 2018). An organization needs a strategy to face the challenges of industrial transformation 4.0. Mergers and acquisitions (M&A) have become a popular strategic choice for companies around the world who want to grow and develop (Bauer & Matzler, 2014). Although it is still a controversy among scientists whether M&A will improve or reduce company performance, many companies do cross-border mergers and there is a significant increase in post- M&A technology innovation. Bank Tabungan Pensiunan Nasional (Bank BTPN) uses M&A strategies for the purpose of innovating to be able to face the challenges encountered in the industrial era 4.0 {(Chen, Meng, & Li, 2018), (McKinsey&Company, 2020), (Stiebale, 2016)}. This study makes the following scientific contributions: First, to find out whether the company's performance has improved after the merger. Secondly, this study can serve stakeholders to better understand Bank BTPN after merging with business opportunities offered by Bank BTPN to be sustainable and cooperate more closely (Ghobakhloo, 2019). RESEARCH METHOD This research is case study research is motivated by the phenomenon of the increasing prevalence of companies merging in Indonesia, as well as Bank BTPN in 2018 suddenly merged with SMBCI companies from Japan even though Bank