Measurement Efficiency Bank General Sharia in Indonesia Uses Data Envelopment Analysis (DEA)

Abstract

This study aims to measure the efficiency value of Islamic Commercial Banks in Indonesia using Data Envelopment Analysis (DEA) for 2021-2023. The research sample was determined using the purposive sampling method. The selected sample was 11 Islamic Commercial Banks. This study uses secondary data from the annual reports of each Islamic Commercial Bank. The variables are determined using the intermediation approach. The input variables used are total assets and third-party funds, while the output variables used are operating income and total financing. The measurement of the efficiency of Islamic Commercial Banks uses MaxDEA 12 Lite software with the input-oriented Variable Return to Scale (VRS) model. The findings showed the increasing number of banks achieving full efficiency from three (3) banks in 2021 to six (6) banks in 2023 indicates an overall improvement in operational performance and resource utilisation within the Islamic banking sector. Hence, the results offer practical benchmarks for improving operational efficiency and support decision-making among bank managers and regulators.