The Efficiency of Islamic Commercial Banks in Indonesia uses the Super Efficiency Concept

Abstract

Measuring the effectiveness of sharia banking organizations is now even more crucial due to the expanding popularity of sharia banking worldwide and in Indonesia in particular. The ability of banking organizations to maximize the resources under their control will undoubtedly be determined by the efficiency measurement. In other words, a company's productivity will increase with increased efficiency. The Data Envelopment Analysis (DEA) idea, which measures business efficiency, has evolved into the super efficiency notion. This study intends to rate Islamic Commercial Banks in Indonesia according to their efficiency level. This kind of study employs panel data and is quantitative. Six Islamic Commercial Banks that were registered with the Financial Services Authority for the years 2017 through 2019 made up the sample. Purposive sampling was used in this study's sample process. According to the study's findings, three banks have improved their efficiency while the others have not. With a score of 111.97%, Bank Syariah Mandiri has the highest efficiency rating. Bank BCA Syariah is second with a score of 111.80%, and Bank BRI Syariah is third with a score of 111.10%.