EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
Nur Khalimah.
Edy Yusuf Agung Gunanto.
Ekonomi Islam.
Ekonomika dan Bisnis.
Universitas Diponegoro.
Semarang Abstract The development of Islamic banking in Indonesia is still not optimal, so it requires performance improvement.
It is necessary to measure efficiency and productivity to achieve predetermined targets.
This study measures the level of efficiency of 12 Islamic commercial banks in Indonesia for the 2016-2018 period using DEA (Data Envelopment Analysi.
, method with the assumption of CRS (Constant Return to Scal.
and maximizing output.
Furthermore, the malmquist index analysis is to see the productivity level of Islamic commercial banks.
The results show that the overall efficiency of Islamic commercial banks in Indonesia has In 2016, the average efficiency of Islamic commercial banks was 100 percent.
2017 the average efficiency was 99.
93 percent with 3 Islamic commercial banks that were not In 2018 the average efficiency was 98.
4 percent with 2 Islamic commercial banks that were not efficient.
The results of the malmquist index analysis in 2017, there were 8 Islamic commercial banks increasing returns to scale, while 4 Islamic commercial banks decreasing returns to scale.
In 2018, 11 Islamic commercial banks increasing returns to scale and 1 Islamic commercial banks decreasing returns to scale.
Keywords: Efficiency, productivity.
DEA.
Islamic Bank.
INTRODUCTION
The development of the Islamic Financial Institutions (IFI) industry in Indonesia, especially Islamic banking, has progressed both in terms of institutional aspects and business The development of Islamic banking from the institutional aspect can be seen by the number of Islamic Commercial Banks (ICB.
and Sharia Business Units (SBU.
The Otoritas Jasa Keuangan (OJK) or the Financial Services Authority noted that until 2018, the number of Islamic banks was 14 ICBs, 20 SBUs and 167 BPRS.
There was an increase in the number of 1 ICB and a decrease in 1 SBU in 2018 compared to 2017 as shown in Table 1.
Table 1.
Development of National Sharia Banking and Banking Offices 2016-2018 .
Sharia Banks Bank Office
Bank Office
Bank Office
Sharia Commercial Bank
Sharia Business Unit
BPRS
Source: Sharia Banking Statistics 2018 Corresponding author.
Email address: nurkhalimah@students.
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AFEBI Islamic Finance and Economic Review (AIFER) Volume 4.
No 1 2019 The development of Islamic banking from the aspect of business performance can be seen from the development of assets, third party funds (TPF) and financing which experienced significant development as shown in Table 2.
Table 2.
Development of Indonesian Islamic Banking 2016-2018 .
illion rupia.
Year
Asset
Funding TPF
356,503
248,007
279,335
424,181
285,695
334,888
477,327
320,193
371,828
Source: Sharia Banking Statistics 2018 Although Islamic banking has experienced quite rapid development in terms of institutional and performance aspects, the market share of Islamic banking in Indonesia is still relatively small.
The following is a comparison of the development of Islamic banking assets and market share.
Table 3.
Development of Islamic Banking Assets and Market Share in Indonesia Indicator Asset (Trillion Rupia.
Rp 365,6 Rp 435,02 Rp 489,69 Market Share .
5,33 % 5,55% 5,96 % Source: Sharia Banking Statistics 2018 In this case, there is a gap phenomenon due the fact that Indonesia is a country with the largest muslim population in the world as shown by the Indonesia Central Statistics Board (BPS) in 2010 as many as 207.
17 million people or about 87.
18 of the total population of Indonesia adheres to Islam and assessment of the Global Islamic Financial Report in 2016, where Indonesia ranks sixth in the countries that have the potential and conduciveness in developing the Islamic finance industry.
However, in reality, the Islamic banking market share is still relatively small compared to the national banking market share, which is only 5.
percent of total banking assets nationally at the end of 2018.
Research conducted by (Putri, 2.
on the efficiency of Islamic Commercial Banks in Indonesia in 2013-2015 using a data envelopment analysis (DEA) approach concluded that overall Islamic Commercial Banks in Indonesia have not yet reached 100 percent efficiency.
In 2013, the average overall efficiency level of ICBs was 97.
15 percent, then increased in 2014 58 percent.
However, in 2015, the average ICBs efficiency decreased by 2.
02 percent to 56 percent.
It was necessary to conduct further research to measure the level of efficiency of Islamic banking in the following year, namely 2016-2018 and find the best solution so that Islamic banking can achieve 100 percent efficiency.
On the other hand, every business including banks needs to know the return-on-investment to measure efficiency in converting the money used (ROA) into net profit.
In the 2018.
Indonesian Islamic Financial Development Report (Keuangan, 2.
, show that during 20162018 the ROA of Islamic Commercial Banks has increased.
Ideally, the higher the ROA number, the better the assumptions of the companyAos performance in terms of equity Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
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EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
The elaboration of the gap phenomenon and the results of previous research as well as the variables that need to be included in measuring the efficiency of Islamic Banking using the Data Envelopment Analysis (DEA) method was carried out for further research.
This study has included 12 Islamic Commercial Banks (ICB.
in Indonesia using the financial reporting period The use of the DEA method was because the DEA method can obtain more accurate results when compared to using financial ratio analysis (Hadad et al.
, 2.
The DEA method provides information on banks that were less efficient and was able to identify which banks have achieved the highest level of efficiency so that this can be used as a reference for banks that were less efficient.
The phenomenon of the rapid development of Islamic Banking did not necessarily indicate productivity, because productivity was not merely productive or produce, but was a combination of effectiveness and efficiency (Pambuko, 2.
In this codition, productivity analysis was important because productivity was one of the performance measurements and it was possible to be a factor that was taken into account in decision making (Basalamah, 2.
To measure productivity, this study uses the Malmquist Productivity Index (MPI) analysis.
The Malmquist Index is part of the DEA method which specifically looks at the productivity level of each business unit, so that changes in the level of efficiency and technology used will be seen based on predetermined inputs and outputs.
The Malmquist Index was also used to analyze changes in performance over time (Rusydiana, 2.
LITERATURE REVIEW
Production and Cost Concepts Bank is one type of company, where as an economic actor who uses factors of production .
to produce goods or services .
(Sadono Sukirno, 1.
The production function can be shown by the following formula:
Q = f (K.
T) .
Equation 1 explains that the level of production of a good or service (Q) depends on the amount of capital (K), labor (L), natural wealth (R) and the level of technology (T) used.
Different amount of production naturally requires different factors of production, in addition to a certain levelof production a combination of different factors of production can also be used (Sadono Sukirno, 1.
In the production function, there is not only the concept of production but also the concept of cost.
The cost concept is closely related to the product concept introduced (R.
Lipsey.
The cost curve shows the minimum product cost at various levels of output.
In Figure 1 in the short run either one or more factors of production are assumed to be The total fixed cost (TFC) reflects all liabilities or costs incurred per unit time for all fixed inputs.
The total variable cost (TVC) is the total cost borne per unit of time for all the variable inputs used.
The total cost (TC) is TFC plus TVC.
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AFEBI Islamic Finance and Economic Review (AIFER) Volume 4.
No 1 2019 Figure 1: Total Cost Curve Source: (Dominick Salvatore, 1.
Concept of Efficiency and Productivity Productivity efficiency can be used to measure the performance of a unit of economic Both are concepts that show the ratio of the results of the comparison between input and output (Nurfikasari & Tanuatmodjo, 2.
The concept of efficiency is a fundamental concept and was born from the economic concept of using small resources and producing optimal output.
The concept of efficiency begins with the concept of microeconomic theory, namely producer theory and consumer The producer theory states that producers tend to maximize profits and minimize costs.
Meanwhile, consumer theory states that consumers tend to maximize their utility or level of Figure 2: Efficiency Concept Source (Collie, et al.
, 2.
Figure 2 explains the concept of efficiency where in an industry, a company only uses 1 input (X) to produce 1 output (Y).
Companies operating at point A are considered technically inefficient compared to companies operating at point B.
This is because with the same amount of input (X.
, companies operating at point B can produce more output (Y.
than the output produced by companies operating at point A, namely Y1.
From the point of view of Islamic economics, the concept of efficiency is in line with Sharia principles which aim to achieve and maintain the maqashid of Sharia, namely the maintenance of al-maal (Sari & Suprayogi, 2.
The concept of efficiency is basically to avoid all forms of waste as contained in the letter Al-Israo verse 26-27:
)(AaOA a AaO aA ca A a eECa ea O aCacNua aO eEIa eEaOIa aOeIa EA U AaO aE aO aaE aa ea a eA Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
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EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
a A eOA
ca AOI n aO aEIa EA
ca Aau acI eE aI a aaOIa EaIa eO au e aOIa EA
)(AOA
U aAIa E aa aaN aEAA a aA aOA Meaning: give to close relatives their due, as well as the poor and needy travellers.
And do not spend wastefully.
Surely the wasteful are AulikeAy brothers to the devils.
And devil is ever ungrateful to His Lord (QS.
Al-Israa .
:26-.
Data Envelopment Analysis (DEA) Concept and Malmquist Productivity Index (MPI) The purpose of DEA was to focus more on evaluating the performance of an Economic Activity Unit (EAU).
The evaluation was carried out on the relative efficiency of comparable EAUs, then the efficient EAUs will form a frontier line.
If the EAU is in the frontier line, then it can be said to be relatively efficient compared to other EAUs in sample.
DEA can also show some EAUs which can be references for inefficient EAUs (Ascarya.
Diana Y.
dan Guruh S.
Malmquist Index or Malmquist Productivity Index (MPI) is part of the DEA method that specifically measures productivity.
There are two things that are calculated in the measurement of the Malmquist Index, namely catch-up effect and frontier shift effect.
The catch-up effect measures the rate of change in relative efficiency from period one to period two.
Meanwhile, the frontier shift effect measures the rate of technological change which is a combination of inputs and outputs from period one to period two.
Sharia Banking Concept According to the Law of the Republic of Indonesia Number 21 of 2008 dated July 16, 2008 concerning Islamic Banking, it is everything related to sharia banks and sharia business units, including institutions, operational activities, as well as methods and processes in carrying out their operational activities.
Meanwhile, sharia commercial banks are sharia banks which in their activities provide services in payment traffic.
According to (Karim, 2.
in (Sri et al.
, basically, the products offered by Islamic Banks can be divided into three major parts, .
Fund distribution products .
Fundraising products .
Service products Framework This study measured the efficiency level of 12 Islamic Commercial Banks in Indonesia 2016-2018 using the Data Envelopment Analysis (DEA) method with the assumption of Constant Return to Scale (CRS) and maximizaing output.
The input variables included: first, the number of deposits, which means the amount of public funds both individuals and legal entities that can be collected by Islamic Banks.
Second, fixed assets were tangible assets that were not intended to be sold in the context of normal company activities and have a useful life or more than one year.
Third, operational costs were defined as costs used by the bank to carry out its operational activities.
Fourth, the cost of profit sharing was the bankAos obligation for third party funds that have been collected by Islamic banks.
The output variables included:
first, financing, namely murabahah financing and financing other than murabahah.
Current assets that were used as output were cash and curret accounts with Bank Indonesia, which were considered as the most liquid and were not temporarily oriented to generate profits.
Furthermore, operating income was income resulting from operational activities of Islamic Banks.
Finally.
ROA (Return on Asset.
was one of the profitability ratios that can show the Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
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AFEBI Islamic Finance and Economic Review (AIFER) Volume 4.
No 1 2019 companyAos success in generating profits.
ROA is able to measure the companyAos ability to generate profits in the past and then projected in the future.
Then, to measure productivity, this study uses the analysis of the Malmquist Productivity Index (MPI).
There were two things that were calculated in the Malmquist Index measurement, namely the catch-up effect which measures the rate of change in relative efficiency from period one to period two and the frontier shift effect which measured the rate of technological change which was a combination of input and output from period one to period two.
Laporan Keuangan 12 BUS Tahun2016-2018
Input
Jumlah simpanan Aktiva tetap Biaya operasional Biaya bagi hasil
Output
Pembiayaan Murabahah
Pembiayaan Lainnya Aktiva lancar
Pendapatan operasional ROA
Nilai Efisiensi (Metode DEA dengan pendekatan CRS) Tingkat Efisiensi BUS
Produktivitas BUS
Figure 3: Framework
RESEARCH METHODOLOGY
This study aims to measure and analyze the efficiency and productivity of Islamic Banking in Indonesia during 2016-2018 at 12 Islamic Commercial Banks (ICB.
, using a non parametric analysis method, namely the Data Envelopment analysis (DEA) method.
The analytical tool used in this research was Banxia Frontier Analyst (BFA).
This research was using the Data Envelopment Analysis (DEA) method, had use data in the form of inputs and outputs of an Economic Activity Unit (EAU).
The input variables included the number of deposits, fixed assets, operational costs, and profit-sharing costs while the output variables consist of Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
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EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
murahabah financing .
stishna, ijarah, qard, mudharabah, musyaraka.
, current assets, operating income, and ROA.
The following 12 Islamic Commercial Banks (ICB.
were used as research samples:
Table 4.
List of Bank Samples in Research Sharia Commercial Banks Bank Muamalat Indonesia (BMI) Bank Syariah Mandiri (BSM) Bank Syariah Mega Indonesia (BSMI) Bank Rakyat Indonesia (BRI) Syariah Bank Syariah Bukopin Bank Negara Indonesia (BNI) Syariah Bank Jawa Barat dan Banten (BJB) Syariah Bank Central Asia (BCA) Syariah Bank Victoria Syariah 10 Bank Maybank Syariah Indonesia 11 Bank Panin Syariah 12 Bank Tabungan Pensiunan Nasional Syariah The approach used in measuring efficiency was to use the ratio of output to input, as shown in equation .
ycycycyycyc Efficiency = yaycuycyycyc a .
In the DEA approach, linear programming was used to maximize the ratio between input and output (Charnes.
Cooper dan Rhodes, 1.
Likewise for DMUs in the Islamic Banking For DMUs in the banking industry .
hich are the object of the stud.
, all input and output samples were denoted .
by AunAy and AumAy respectively, where n= input and m = Then the efficiency of each bank was calculated through equation .
Ocyco yc yc ycn ycnyc Eayc = Ocycn=1 ycu yc ycu .
yc=1 yc ycyc for i = 1,AA.
, m and j = 1,AAn.
Eayc = bank s efficiency m = observed output of bank s n = observed input of bank s ycycnyc = the amount of output i produced by bank s ycuycyc = the amount of input j used by bank s ycycn = the weight of the output i produced by the bank s ycyc = the input weight j given by bank s and i is calculated from 1 to m and j is calculated from 1 to n Equation 2 shows the use of one input and one output variable.
Then, the efficiency ratio .
was maximized with the following constraints:
Ocyco yc ycycnyc Maximize ycn Eayc = Ocycn=l ycu Where ycycn and ycyc Ou 0 .
yc=l ycyc ycuycyc O 1 .
r = 1,.
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AFEBI Islamic Finance and Economic Review (AIFER) Volume 4.
No 1 2019 This study has used the CCR model in accordance with the opinion of Priyonggo Suseno .
The assumption used in this research was output maximization.
In the measurement of productivity using the Malmquist Index was introduced by Caves al .
(Rusydiana, 2.
RESULT AND DISCUSSION
Based on the results of data processing using the DEA method which assumes Constant Return to Scale (CRS), the efficiency level of Islamic Commercial Banks in Indonesia in 20162018 is shown in Table 5.
Table 5.
Technical Efficiency Level of 1 ICBs in Indonesia 2016-2018 .
Bank Name Bank Muamalat Indonesia (BMI) Bank Syariah Mandiri (BSM) Bank Syariah Mega Indonesia (BSMI) Bank Rakyat Indonesia (BRI) Syariah Bank Syariah Bukopin Bank Negara Indonesia (BNI) Syariah Bank Jawa Barat dan Banten (BJB) Syariah Bank Central Asia (BCA) Syariah Bank Victoria Syariah Bank Maybank Syariah Indonesia Bank Panin Syariah BTPN Syariah Average Efficiency Source: processed data Table 5 shows that the 12 SCBs which we were used as research objects had reached a level of technical efficiency of 100 percent in 2016, decrease in 2017 with an average efficiency 93 percent and in 2018 experienced a decline again with an efficiency level of 98.
Otoritas Jasa Keuangan (OJK) or The Financial Services Authority also noted that the growth of total Islamic bank assets experienced a slowdown from 23.
39 percent in the second quarter of 2017 to 14.
58 percent in the second quarter of 2018.
In 2017, the average efficiency value of 12 Islamic commercial banks in 2017 reached 93 percent with 3 percent inefficiency ICBs and 9 efficiency ICBs.
The 3 inefficiency ICBs are Bank Syariah Mega Indonesia (BSMI).
Bank Rakyat Indoneisa (BRI) Syariah, and Bank Central Asia (BCA) Syariah.
Table 6.
Input-Output Value of Mega Indonesia Sharia Bank in 2017 .
illion rupia.
Bank Name Efficienc Actual Target Potential y Rate Improvement Total Deposit Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
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EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
Bank Name Fixed Asset Operating Cost Profit Sharing Fee Murabahah Financing Other Financing Current Asset Operating Income ROA .
Source: data processing result Efficienc y Rate Actual Target Potential Improvement Table 6 shows the results that BSMI in 2017 has an effciciency level of 99.
83 percent, which means that it has not yet reached the level of efficiency/inefficiency.
The inefficiency in BSMI due to the fact that the allocation of fixed assets input.
It takes a reduction of 63.
percent of fixed assets in order toachieve the level inefficiency.
The required input target should be 116,098.
14 million rupiah.
however, the actual input was 318,016 million rupiah.
achieve the efficiency level of output, an increase of 0.
17 percent .
urabahah financin.
, 80.
ther financin.
, 70.
86 percent .
ixed asset.
, 24.
19 percent .
perating incom.
and 76 percent (ROA).
Table 7.
Development of BSMI Input-Output Value in 2017-2018 Input/Output Actual Target Potential Improvement Total Deposit Fixed Asset Development Operational Cost Development Development of Profit Sharing Fee Development of Murabahah Financing Development of Other Financing Development of Current Asset Development of Operating Income Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
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AFEBI Islamic Finance and Economic Review (AIFER) Volume 4.
No 1 2019 Input/Output Actual Development of ROA Development Source: DEA data processing result Target Potential Improvement From table 7 it is known that there was an improvement in 2018 that was suggested in 2017, namely the actual value of other financing and current assets increased.
Other financing increased by 583,381 million rupiah from 2017 or 85.
7 percent from the previous year.
This increase exceeds the 2017 potential improvement, which is 4.
8 percent.
Current assets increased by 3,737,092 million rupiah from 812,596 million rupiah in 2017, or an increase of 9 percent from the previous year.
This increase exceeds the potential improvement, which 04 percent greater.
Table 8.
BRI Syariah Input-Output Value in 2017 .
illion rupia.
Bank Name Efficienc Actual Target Potential y Level Improvement Total Deposits Fixed Assets Operating Costs Profit Sharing Fees Murabahah Financing Other Financing Current Assets Operating Income ROA .
Source: DEA Result Table 8 shows that in 2017.
BRI Syariah has an efficiency level of 99.
74 percent, which means that it is not yet efficienct/inefficient.
The efficiency stems from the input allocation of the amount of savings and the cost of profit sharing.
It takes a reduction of 18.
97 percent of the total savings and 2.
88 percent of the cost of profit sharing in order to achieve the level of The input target for the required ampunt of savings shoud be 5,293,850.
01 million rupiah, but the actual input is 6,533,329 million rupiah and the required profit-sharing cost input target should be 1,159,573.
76 million rupiah, but the actual input is 1,193,918 million To achieve the efficiency level of output, an increase of 28.
53 percent .
urabahah financin.
, 32.
59 percent .
ther financin.
, 0.
26 percent .
ixed asset.
, 5.
98 percent .
perating incom.
95 percent (ROA) is required.
Table 9.
Development of BRI Syariah Input-Output Value in 2017-2018 Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
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EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
Input/Output Total Deposits Development of Fixed Assets Development of Operating Costs Development of Profit Sharing Fees Development of Murabahah Financing Development of Other Financing Development of Current Assets Development of Operating Income Development of ROA Development Source: DEA Result Actual Target Potential Improvement to BRI Syariah in 2018, which are suggested in 2017, are theactual value of murabahah financing, other financing, current asset, and increased operating income.
Murabahah financing increased by 913,859 million rupiah from 2017 or 8.
7 percent from the previous year.
However, this increase has not yet reached the 2017 potential improvement, which is 28.
53 percent.
Other financing increased by 1,432,445 million rupiah from 2017 or 21 percent from the previous year.
Although it has increased, it has not yet reached the 2017 potential improvement, which is 32.
59 percent.
Current assets increased by 13,278,172 million rupiah or increased 304 percent from the previous year.
This increase exceeds the 2017 potential improvement, which is 303.
7 percent higher.
Operating income increased by 328,962 million rupiah from 2017 or 11 percent from the previous year.
This increase exceeds the 2017 potential improvement which is 5.
98 percent, making it 5.
02 percent bigger.
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AFEBI Islamic Finance and Economic Review (AIFER) Volume 4.
No 1 2019 Table 10.
BRI Syariah Input-Output Value in 2017 .
illion rupia.
Bank Name Efficienc Actual Target Potential y Level Improvement Total Deposits Fixed Assets Operating Cost Profit Sharing Fee Murabahah Financing Other Financing Current Asset Operating Income ROA .
Source: DEA Result BCA Syariah in 2017 has an efficiency level of 99.
59 percent, which means that it has not yet reached the level of efficiency/inefficiency.
The in efficiency in BCA Syariah stems from the allocation of fixed assets input.
It takes a reduction of 9.
11 percent of fixed assets in order to achieve the level of efficiency.
The required input target should be 73,944.
22 million rupiah, but the actual input is 81,354 million rupiah.
To achieve the efficiency level of output, an increase of 0.
41 percent .
urabahah financin.
, 8.
13 percent .
ther financin.
, 0.
41 percent .
ixed asset.
, 0.
41 percent .
perating incom.
03 percent (ROA).
Table 11.
Development of BCA Syariah Input Output Value in 2017-2018.
Input/Output Actual Target Potential Total Deposits Development of Fixed Assets Development of Operating Costs Development of Profit Sharing Fee Development of Murabahah Financing Development of Other Financing Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
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EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
Input/Output Development of Current Assets Development of Operating Income Development of ROA Actual Development Source: DEA Result Target Potential The recommended improvements to BCA Syariah for 2018 in 2017 were that the actual value of operational costs decrease and murabahah financing, other financing, current assets and operating income increase.
Operational costs decreased by 992,412 million rupiah from 2017 or 532.
6 percent.
The decrease in inputs has a very good effect on efficiency, because if the inputs is reduced but the output produced is the same or greater than other SCBs, the potential to achieve efficiency is high.
Murabahah financing increased by 913,859 million rupiah from 2017 or 58.
7 percent from 2017.
This increase exceeded the 2017 potential improvement, which was 58.
29 percent.
Other financing increased by 596,312 million rupiah from 2017 or 29.
3 percent.
This increase exceeded the 2017 potential improvement, which was 2 percent.
Current assets increased by 2,103,595 million rupiah or 312.
6 percent from 2017.
This increase exceeded the 2017 potential improvement, which was 312,1 percent.
Operating income increased by 52,945 million rupiah or 10.
8 percent from 2017.
This increased exceeded the 2017 potential improvement 2017, which was 10.
39 percent greater.
In 2018, the efficiency level of 12 ICBs decreased from the previous year with an average efficiency of 98.
4 percent.
There were 10 ICBs that are efficient and 2 ICBs that were inefficient, namely Bank Muamalat Indonesia (BMI) and Bank Syariah Bukopin.
Table 12.
Bank Muamalat Indonesia Input-Output Value in 2018 .
illion rupia.
Bank Name Efficienc Actual Target Potential y Level Improvement Total Deposits Fixed Assets Operating Cost Profit Sharing Fee Murabahah Financing Other Financing Current Assets Operating Income ROA .
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AFEBI Islamic Finance and Economic Review (AIFER) Volume 4.
No 1 2019 Source: Processed Data Table 12 shows the results that in 2018 Bank Muamalat Indonesia (BMI) had an efficiency level of 94.
89 percent, which means that it has not yet reached the level of efficiency/inefficiency.
It takes a reduction of 67.
53 percent of fixed assets and 5.
46 percent of profit-sharing fees in order to achieve the level of efficiency.
The input target for fixed assets required shoud be 1,090,192.
65 million rupiah, but the actual input is 3,357,284 million rupiah.
The input target for the required profit-sharing costs should be 2,044,812.
78 million rupiah, however, the actual input is 2,162,970 million rupiah.
To achieve the efficiency level of output, an increase of 5.
39 percent .
urabahah financin.
, 5.
39 percent .
ther financin.
, 12.
ixed asset.
, 27.
76 percent .
perating incom.
and 10,260.
56 percent (ROA).
To find out more about the factors that caused Bank Muamalat in 2018 to be inefficient, the input output value in 2018 will be compared with the input output value in 2017.
Table 13.
Development of BMI Input Value in 2017-2018 Input/Output Actual Target Potential Total Deposits Development of Fixed Assets Development of 703,845 Operating Costs Development of Profit-Sharing Fees Development of Murabahah Financing.
Development of Other Financing Development of Current Assets Development of Operating Income 2017 Development of ROA Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
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EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
Input/Output Actual Development Source: DEA Result Target Potential Tabel 13 shows that Bank Muamalat experienced inefficiency in 2018 when compared to The reasons are, among others, first, fixed assets increased by 703,845 million rupiah or 5 percent so that a reduction of 67.
53 percent is needed to achieve the level of efficiency.
Second, operational costs increased by 107,317 million rupiah or 6.
6 percent from 2017 with a contribution value of 79 percent efficiency, therefore this decrease had a big impact.
Third, murabahah financiang decreased by 4,016,527 million rupiah or 20.
8 percent from 2017.
This decrease greatly affects efficiency because the contribution of murabahah financing to efficiency is 89 percent.
The results of data processing recommended an increase of 5.
percent in order to achieve the level of efficiency.
Fourth, other financing decreased by 3,587,211 million rupiah or 17.
4 percent from 2017.
The result of data processing recommended an increase of 5.
39 percent in order to achieve the level of efficiency.
Fifth, operating income decreasd by 616,312 million rupiah or 14.
7 percent from 2017.
The result of data processing recommended an increase of 27.
76 percent in order to achieve the level of Sixth.
ROA decreased by 0.
03 percent.
The result of data processing required an increase 10,260.
56 percent in order to achieve the level of efficiency.
Table 14.
Bank Syariah Bukopin Input Output Value 2018 .
illion rupia.
Bank Name Efficiency Actual Target Potential Level Improvement Total Deposits Fixed Assets Operating Cost Prodit-Sharing Fees Murabahah Financing Other Financing Current Assets Operating Income ROA .
Source: DEA Result Table 14 shows that in 2018 Bank Syariah Bukopin was not yet efficient as indicated by an efficiency level of 85.
98 percent.
It takes a reduction of 24.
25 percent of total deposits and 35 percent of fixed assets in order to achieve efficiency levels.
The input target for the required amount of savings should be 842,598.
61 million rupiah, but the actual input is 1,112,392 million rupiah.
The input target for fixed assets required should be 125,193.
million rupiah, but the actual input is 315,739 million rupiah.
To achieve the efficiency level of output, an increase of 32.
26 percent .
urabahah financin.
, 16.
30 percent .
ther financin.
, 30 percent .
ixed asset.
, 13.
60 percent .
perating incom.
and 5,192.
32 percent (ROA) are To find out more about what factors caused Bank Syariah Bukopin in 2018 to be inefficient, the input output value in 2018 will be compared with the input output value in 2017.
Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
ttps://creativecommons.
org/licenses/by/4.
AFEBI Islamic Finance and Economic Review (AIFER) Volume 4.
No 1 2019 Table 15.
Development of Bank Syariah Bukopin Input Output Value in 2017-2018 Input/Output Actual Target Potential Total Deposits Developmet of Fixed Assets Development of Operating Costs Development of Profit-Sharing Fees Development of Murabahah Financing Development of Other Financing Development of Current Assets Development of Operating Income 2017 Development of ROA Development Source: DEA Result From Table 15, it can be seen that when compared to 2017.
Bank Syariah Bukopin experienced inefficiency in 2018, namely, first, fixed assets increased by 86,826 million rupiah 9 percent from 2017 concequently that a reduction of 60.
35 percent was needed to achieve the level of efficiency.
Second, murabahah financing decreased by 166,501 million rupiah or 2 percent from 2017.
The result of data processing recommended an increase of 32.
percent in order to achieve the level of efficiency.
The required input target should be 1,934,349.
74 million rupiah, but the actual input is 1,462,523 million rupiah.
Third, other financing decreased by 3,587,211 million rupiah or 3.
3 percent from 2017.
The results of data processing recommended an increase of 16.
3 percent in order to achieve the level of Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
ttps://creativecommons.
org/licenses/by/4.
EFFICIENCY ANALYSIS OF INDONESIAN SHARIA BANKS
Fourth, operating income decreased by 77,186 million rupiah or 12.
5 percent from It recommended an increase of 16.
30 percent in order to achieve the level of efficiency.
Malmquist Index was used to measure the productivity level of each business unit.
There are two things that are calculated in the Malmquist Index measurement, namely catch-up effect and frontier-shift effect.
The catch-up effect measures the rate of change in relative efficiency fro period 1 to period 2.
The frontier-shift effect measures the rate of technological change .
nput-output combinatio.
from period 1 to period 2.
Following are the results of the Malmquist Index data processing of 12 ICBs in Indonesia in 2016-2018:
Period Table 16.
Malmquist Indexes of 12 ICSs in Indonesia in 2016-2018
Bank Name
Malmquist index
Catchup
Frontier shift
BCA Syariah
BCA Syariah
BCA Syariah
BJB Syariah
BJB Syariah
BJB Syariah
BNI Syariah
BNI Syariah
BNI Syariah
BRI Syariah
BRI Syariah
BRI Syariah
BTPN Syariah
BTPN Syariah
BTPN Syariah
BMI
BMI
BMI
Bank Panin Syariah
Bank Panin Syariah
Bank Panin Syariah
Syariah Bukopin
Syariah Bukopin
Syariah Bukopin
Syariah Mandiri Syariah Mandiri Syariah Mandiri BSMI
BSMI
BSMI
Victoria Syariah Victoria Syariah Published by AFEBI Islamic Finance and Economic Review This is an open access article under the CC BY SA license .
ttps://creativecommons.
org/licenses/by/4.
AFEBI Islamic Finance and Economic Review (AIFER) Volume 4.
No 1 2019 Period Bank Name Victoria Syariah Maybank Syariah Maybank Syariah Maybank Syariah Sourcer: DEA Result.
Malmquist index Catchup Frontier shift From Table 12, it can be seen that in 2017 there were 8 ICBs experiencing increasing returns to scale, namely BNI Syariah.
BTPN Syariah.
Bank Muamalat Indonesia.
Bank Panin Syariah.
Bank Syariah Bukopin.
Bank Syariah Mandiri.
Bank Victoria Syariah, and Maybank Syariah Indonesia.
Meanwhile, 4 ICBs experienced a decreasing return to scale, namely BCA Syariah.
BJB Syariah.
BRI Syariah, and BSMI.
In addition to ecperiencing decreasing returns to scale.
BCA Syariah.
BRI Syariah and BSMI were also inefficient in 2017.
Althogh BJB Syariah experienced a decrease in productivity, in 2017 it was efficient.
In 2018, there were 11 SCBs experiencing increasing returns to scale and oly 1 SCB decreasing return to scale.
The SCBs which decreases return to scale is Panin Syariah Bank with a Malmquist value of 0.
Despite experiencing a decreasing return to scale.
Panin Syariah Bank in 2018 was efficient.
Muamalat Indonesia Bank and Syariah Bukopin Bank were inefficiency in 2018 but their productivity has increased.
Sharia Commercial Banks (SCB.
whose relative efficiency change rate from 2016 to 2017 has decreased, namely BCA Syariah with a catchup value of 0.
9959 and BRI Syariah with a catchup value of 0.
Meanwhile from 2017 to 2018, the SCBs that experienced a decreased in the rate of change in relative efficiency were Bank Muamalat Indonesia and Bank Syariah Bukopin.
Meanwhile, the value of the frontier-shift effect that has decreased from 2016 to 2017 is BCA Syariah.
BJB Syariah.
BRI Syariah and BSMI.
Meanwhile, from 2017 to 2018 only Panin Syariah Bank experienced a decline.
CONCLUSION
Based on the analysis that has been carried out in the previous discussion, it can be concluded tat the results of the calculation of the efficiency of 12 Islamic Commercial Banks (ICB.
in Indonesia using DEA in 2016-2018 overall decreased.
Sharia commercial banks achieved an efficiency level of 100 percent 2016, decreased in 2017 with an average efficiency 93 percent and in 2018 experienced a decline again with an efficiency level of 98.
4 percet.
mengalami penurunan kembali dengan tingkat efisiensi 98.
4 persen.
The result obtained from the productivity analysis with the Malmquist Index show that in 2017, 8 out of a total of 12 ICBs experienced an increase in productivity, or about 67% of all Islamic commercial banks.
Meanwhile, in 2018, 11 of the total 12 ICBs experienced an increase in productivity, or around 92% of all Islamic commercial banks.
It is characterized by a score of more than 1.
While the rest show a relatively low level of productivity.
References