Determinant efficiency of the banking industry in Indonesia

Hadi Satria Ganefi, Oding Syafrudin, Arief Surya Lesmana

Abstract


The concept of efficiency emphasizes the ability to utilize available resources economically. Efficiency in banking is stated as an indicator of bank performance that is needed to survive in competition and changes in consumer behavior. This study investigates the efficient performance of commercial banks in Indonesia, crucial for their resilience amidst competitive pressures and evolving consumer behaviors. Utilizing a purposive sample of 85 banks from 2018 to 2022, we employ Data Envelopment Analysis, a non-parametric method, to assess efficiency. Our findings reveal suboptimal operational efficiency across Indonesian commercial banks during the study period, with an average efficiency score consistently below 1. Notably, larger banks, with capital exceeding 70 trillion, exhibit superior efficiency, averaging between 97% to 98%. Conversely, smaller banks, with capital under 6 trillion, demonstrate varied efficiency levels. Hypothesis testing underscores the significant impact of company size, profitability, and capital ratios on bank efficiency.

Konsep efisiensi menggarisbawahi tentang kecakapan dalam memanfaatkan sumber daya yang tersedia secara ekonomis. Efisiensi pada perbankan dinyatakan sebagai indikator kinerja bank yang diperlukan agar dapat bertahan dalam persaingan dan perubahan perilaku konsumen. Penelitian ini bertujuan untuk menilai bagaimana kinerja efisiensi pada bank umum di Indonesia. Sebanyak 85 sampel bank dipilih secara purposive dan digunakan dalam penelitian selama tahun 2018 - 2022. Penaksiran nilai efisiensi pada seluruh bank umum dilakukan menggunakan pendekatan non parametrik dengan Data Envelopment Analysis. Hasil penaksiran menunjukkan bahwa selama periode pengamatan bank umum di Indonesia belum beroperasi secara efisien. Hal ini ditunjukkan dengan nilai rata-rata efisiensi seluruh bank yang bernilai lebih kecil dari 1. Hasil empiris menunjukkan efisiensi tertinggi terdapat pada kelompok bank besar yang memiliki modal di atas 70 triliun dengan rata-rata berkisar 97% sampai 98%. Sedangkan efisiensi tedapat terjadi pada kelompok bank kecil yang memiliki modal di bawah 6 triliun. Hasil pengujian hipotesis menunjukkan bahwa ukuran perusahaan, profitabilitas dan rasio permodalan berpengaruh signifikan terhadap efisiensi bank.


Keywords


commercial bank; data; efficiency; envelopment analysis

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DOI: http://dx.doi.org/10.26623/jreb.v17i2.8994

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Gedung O  Magister Management Program of Universitas Semarang.
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