1. Home
  2. Vol 11, No 2 (2025)
  3. Setiadi

EFFICIENCY ANALYSIS OF ISLAMIC BANKING IN YEAR 2018 - 2023 USING STOCHASTIC FRONTIER ANALYSIS

Hendri Setiadi, Heirunissa Heirunissa, Mutiara Puspa Widyowati

Abstract


ABSTRACT
This study aims to analyze the efficiency of 12 Islamic commercial banks and the market competition of Islamic commercial banks in Indonesia during 2018 to 2023. The data used is secondary data per quarter taken from each bank's website and from OJK. The method used in this study is Stochastic Frontier Analysis (SFA) with input variables, namely operating costs, labor costs, fixed assets, total assets, and third party funds, while the output variable is the total financing of Islamic commercial banks and the Panzar-Rosse method to measure the level of competition in the banking industry. The test results show the highest efficiency value for Category 2 Commercial Bank category by Muamalat Indonesia Bank with a score of 93,67%. The highest efficiency value for Islamic commercial banks in the Bank Group 3 category is Sharia Indonesia Bank with a score of 95,04%. In addition, the lowest efficient value for Category 1 Commercial Bank Islamic commercial banks is Aladin Sharia Bank with a score of 53,66%, and the lowest efficiency value for Bank Group 1 Islamic commercial banks is Aladin Sharia Bank with a score of 82,03%. Islamic commercial banks simultaneously in Category 1 Commercial Bank to Category 3 Commercial Bank and Bank Group 1 to Bank Group 3 show market competition classified as monopolistic competition and the market is not concentrated.
ABSTRAK
Penelitian ini bertujuan untuk menganalisis efisiensi 12 bank umum syariah dan daya saing pasar bank komersial syariah di Indonesia selama tahun 2018 hingga 2023. Data yang digunakan adalah data sekunder per kuartal yang diambil dari website masing-masing bank dan dari OJK. Metode yang digunakan dalam penelitian ini adalah Stochastic Frontier Analysis (SFA) dengan variabel input, yaitu biaya operasional, biaya tenaga kerja, aset tetap, total aset, dan dana pihak ketiga, sedangkan variabel output adalah total pembiayaan bank komersial syariah dan metode Panzar-Rosse untuk mengukur tingkat daya saing di industri perbankan. Hasil pengujian menunjukkan nilai efisiensi tertinggi untuk kategori BUKU 2 oleh Bank Muamalat Indonesia dengan skor 93,67%. Nilai efisiensi tertinggi untuk bank umum syariah dalam kategori KBMI 3 adalah Bank Syariah Indonesia dengan skor 95,04%. Selain itu, nilai efisiensi terendah untuk bank umum syariah BUKU 1 adalah Bank Aladin Syariah dengan skor 53,66%, dan nilai efisiensi terendah untuk bank komersial syariah KBMI 1 adalah Bank Aladin Syariah dengan skor 82,03%. Bank komersial syariah secara bersamaan di BUKU 1 hingga BUKU 3 dan KBMI 1 hingga KBMI 3 menunjukkan persaingan pasar yang diklasifikasikan sebagai persaingan monopolistik dan pasar tidak terkonsentrasi.


Keywords


Efficiency; islamic banking; stochastic frontier analysis

References


Aigner, D. J., & Chu, S. F. (1968). On Estimating the Industry Production Function. The American Economic Review, 58(4), 826–839.

Apriyanan, A., Siregar, H., & Hasanah, H. (2015). Factors Affecting the Cost Efficiency of Banks in the ASEAN-5 Region. Journal of Technology Management, 14, (3), 321–333.

Ascarya, A., & Yumanita, D. (2009). Comparing the Efficiency of Islamic Banks in Malaysia and Indonesia. 11, 95–119. https://doi.org/10.21098/BEMP.V11I2.237.

Astiyah, S. (2009). Financial and Banking System Stability: Efficiency, Risk, and Market Discipline. Jakarta: Center for Education and Central Banking Studies (PPSK), Bank Indonesia.

Astiyah, S., & Husman. (2006). Indonesian Banking Efficiency: Stochastic Frontier Analysis Method. Bulletin of Monetary Economics and Banking, 9(2), 31–58. https://doi.org/10.21098/bemp.v9i2.155

Athoillah M. 2012. Market structure of the Indonesian banking industry: Rosse-Panzar test. Journal of Indonesian Applied Economics. 6(1):22–31.

Bastian, I. (2009). Public Sector Accounting: An Introduction. Jakarta: Erlangga University.

Battese, G. E., & Coelli, T. J. (1993). A Stochastic Frontier Production Function Incorporating a Model for Technical Inefficiency Effects. Working Papers in Econometrics and Applied Statistics No. 10. 69, Department of Econometrics, University of New England.

Battese, G. E., & Coelli, T. J. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics, 20(2), 325–332. https://doi.org/10.1007/BF01205442

Berger, A. N. (1993). "Explaining" 1980s Outcomes in Banking: How Much Can Be Attributed to the Structure-Conduct-Performance Hypothesis?. Journal of Money, Credit and Banking, 25(3), 221–249. https://doi.org/10.2307/2077334

Coelli, T., Rao, D. S. P., O'Donnell, C. J., Battese, G. E. (2005). An Introduction to Efficiency and Productivity Analysis (2nd Ed.). New York: Springer Science.

Hidayati, N., Siregar, H., & Pasaribu, S. (2016). Islamic Banking: Banking Efficiency Analysis in Indonesia.

Leibenstein, H. (1966). Allocative Efficiency vs. "X-Efficiency". The American Economic Review, 56(3), 392–415.

Mala, C., Hosen, M., & Arif, M. (2023). An analysis of market power and efficiency of Islamic banking in Indonesia and Malaysia. Journal of Islamic Economics & Finance. https://doi.org/10.20885/jeki.vol9.iss1.art1.

Meeusen, W., & van Den Broeck, J. (1977). Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error. International Economic Review, 18(2), 435–444. https://doi.org/10.2307/2525757

Muhammad. (2004). Sharia Bank Management. Yogyakarta: AMP YKPN Publishing and Printing Unit (UPP).

Muharram, H. (2007). Comparative analysis of the efficiency of Islamic banks in Indonesia with data envelopment analysis method (Period of 2005). Journal of Islamic Economics and Business, 2(3), 80-166.

Molyneux, P., Lloyd-Williams, D. M., & Thornton, J. (1994). Competitive conditions in European banking. Journal of Banking & Finance, 18(3), 445–459. https://doi.org/10.1016/0378-4266(94)90003-5

Nahar, F., Adha, M., & Wahyudi, R. (2022). Efficiency in Islamic and Conventional Banking in Indonesia. Journal of Islamic Economics Lariba. https://doi.org/10.20885/jielariba.vol8.iss1.art11.

Financial Services Authority of the Republic of Indonesia. (2021). Copy of Financial Services Authority Regulation of the Republic of Indonesia Number 12/POJK.03/2021 concerning Commercial Banks. Jakarta: OJK.

Purwanto, P. (2021). Non-Performing Financing and Efficiency of Islamic Banks in Indonesia. Journal of Business Studies and Management Review. https://doi.org/10.22437/JBSMR.V4I2.13289.

Puteh, A., Rasyidin, M., & Mawaddah, N. (2018). Islamic Banks in Indonesia: Analysis of Efficiency, 1. https://doi.org/10.1108/978-1-78756-793-1-00062.

Rehman, A., Aslam, E., & Iqbal, A. (2021). Intellectual Capital Efficiency and Bank Performance: Evidence from Islamic Banks. Borsa Istanbul Review. https://doi.org/10.1016/J.BIR.2021.02.004.

Sari S, Ajija SR, Wasiaturrahma W, Ahmad RA. (2022). The Efficiency of Indonesian Commercial Banks: Does the Banking Industry Competition Matter? Sustainability. 14(17):10995. doi:10.3390/su141710995

Sharia, P. (2020). Can the Efficiency of Islamic Banks in Indonesia Improve Their Competitiveness?. https://doi.org/10.24235/amwal.v12i1.5862.s1489.

Sugiono. (2005). Business Research Methods. Bandung: Alphabeta.


Full Text: PDF

DOI: 10.34203/jimfe.v11i2.12022

Refbacks

  • There are currently no refbacks.


Copyright (c) 2026 The Author(s)

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.