Ideal Integration Approaches for Enhancing ASDP Group’s Performance Post-Subsidiary Acquisition

Transportation plays a crucial role in the development of civilizations by enabling the movement of people, goods, and cultural exchanges. Among various transportation modes, water-based transport, especially ferries, is vital for linking communities, boosting trade, and promoting tourism in regions that land or air transport cannot reach. PT ASDP Indonesia Ferry (Persero), the sole state-owned enterprise managing ferry services in Indonesia, holds a leading position in the national ferry industry. To sustain its dominance, ASDP undertook a corporate action by acquiring a competitor. The acquisition process, dating back to the 1970s, involves stages of strategy formulation, investigation and selection, negotiation, and integration. According to Mroczynski, integration involves merging operations, cultures, and systems to achieve synergies and strategic goals. This study examines the optimal integration approach used by ASDP to enhance group performance post-acquisition. Utilizing a qualitative research method, focus group discussions were conducted with stakeholders from both ASDP and the acquired company. The study applies Pitkethly’s integration framework, which categorizes integration levels from minimal to extensive. Results show that ASDP has established significant financial management control over the acquired company, but gaps still exist between the desired and current conditions. Therefore, a detailed analysis of the targets ASDP needs to achieve to optimize the integration process is crucial for meeting post-acquisition requirements.