Research Paper
Year: 2019 | Month: July | Volume: 6 | Issue: 7 | Pages: 504-512
Analysis of Efficiency and Productivity of Sharia Commercial Banks in Indonesia
Cepy Herfadiansyah Jayanegara, Lukytawati Anggraeni, Trias Andati
School of Business, IPB University, Indonesia
Corresponding Author: Cepy Herfadiansyah Jayanegara
ABSTRACT
This study aims to analyze the efficiency and productivity of sharia commercial banks in Indonesia. Efficiency and productivity analysis using the nonparametric Data Envelopment Analysis (DEA) method based on the intermediation approach assuming Constant Return to Scale (CRS). The results of the analysis of 12 sharia commercial banks in Indonesia during 2014-2017 showed that the average efficiency level of sharia commercial banks increased initially by 82.4% in 2014 to 84.9% in 2015, then to 90.1% in 2016, then to 99.6% in 2017. The trend of increasing efficiency however is not directly proportional to the trend of increasing productivity. Productivity of sharia commercial banks in 2014-2015 increased by 8.5%, and continued in 2015-2016 at 14.1%, but decreased in 2016-2017 by 8%. On average, the productivity of sharia commercial banks in Indonesia during 2014-2017 was still low at 4.4%. originating from an increase in technical efficiency of 7.2% and a decrease in technological change by 2.6%.
Key words: Sharia Commercial Banks in Indonesia, Data Envelopment Analysis (DEA), Intermediation Approach, Constant Return to Scale (CRS)
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