Analysis of the Efficiency Level of Islamic Commercial Banks in Indonesia using Data Envelopment Analysis (2019-2023 Period)
1Muhammad Fadlillah Fauzukhaq, 2Yulianton Kurnia
1,2State Islamic University Syarif Hidayatullah Jakarta, Indonesia.
2https://orcid.org/0000-0003-0554-4712
https://doi.org/10.47191/jefms/v8-i2-08
ABSTRACT:
This study aims to analyses the level of efficiency and factors that cause the inefficiency of Islamic Commercial Banks (BUS) in Indonesia in 2019-2023. The study used a purposive sampling of 11 Islamic commercial banks. The data analysis method used in this research uses the Data Envelopment Analysis method through input-oriented measurement and the VRS model, with data processing tools, namely the Win4Deap 2 application. This research shows that the efficiency level of Islamic Commercial Banks in Indonesia during 2019-2023 tends to fluctuate. Only one Islamic Commercial Bank whose efficiency level is perfect with a 100% score is BJB Syariah. As for the inefficiency analysis, the cause of inefficiency occurred in the input and output variables. The third-party fund variable became the most significant contributor that caused inefficiency in the Islamic Commercial Bank, which was 31%.
KEYWORDS:
Efficiency; Data Envelopment Analysis; Islamic Commercial Bank.
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