Performance Comparison of Indonesia’s Big Banks Using The Competitive Profile Matrix Approach

This study aims to analyze the competitive position of major banks in Indonesia based on their fundamental performance. Big banks, defined as those with a market capitalization exceeding IDR 100 trillion, significantly influence the Jakarta Composite Index. This research employs an exploratory approach to assess the competitiveness of these big banks using the Competitive Profile Matrix. The findings reveal that PT Bank Central Asia, Tbk (BBCA) holds the highest competitive advantage among Indonesian big banks. BBCA's competitive edge stems from its superior Capital Adequacy Ratio, optimal Cost-to-Income Ratio, strong Current Account Savings Account fund collection, and a conservative Loan-to-Deposit Ratio, coupled with its high Return on Equity. The study emphasizes that big banks are not solely dependent on interest income but also generate significant revenue from fees and commission-based services. Understanding the business strategies and financial ratios of these banks is crucial for investors and regulators in making informed decisions to foster stability and growth within Indonesia’s banking sector.This research contributes by integrating financial ratio analysis with the Competitive Profile Matrix to assess the competitive advantage of big banks in Indonesia. Unlike previous studies, it combines various key financial ratios, offering a comprehensive framework to evaluate how these banks perform amid external market uncertainties. The findings underscore the importance of diversified income streams and operational efficiency, extending beyond traditional interest income models.Theoretically, this study affirms that internal financial strength manifested in ratios serves as a sustainable competitive advantage during market volatility. This contributes to existing theories of competitive advantage by demonstrating the role of financial resilience in maintaining long-term stability, especially for banks facing external economic shocks