Indonesian Bank’s Efficiency Under Intermediation, Operating and Value Added Approach

Abstract

The aim of this research is to know how different approach can give different impact to Indonesian bank's efficiency. The efficiency of bank measured by non parametric analysis, using Data Envelopment Analysis. This research will employ three approach, Intermediation, Operating and Value Added to define the inputs-outputs used in Data Envelopment Analysis. There are 30 banks that used as samples in this research, consist of 4 government banks, 9 Go Public Banks, 11 Joint Venture Banks, and 6 Foreign Banks. The results show that using Value Added approach give highest score in efficiency. Based on the result, the Indonesian banks concern so far is how to increase the deposit, loans and the investments.