MEASURING EFFICIENCY AND EFFECTIVENESS OF INDONESIAN REGIONAL DEVELOPMENT BANKS
DOI:
https://doi.org/10.28986/jtaken.v5i1.309Keywords:
Data envelopment analysis (DEA)
production efficiency
operational efficiency
effectiveness
regional development bank
Abstract
This study explores the efficiency and effectiveness of Regional Development Banks (BPD) based on the results of performance audit conducted by the Audit Board of the Republic of Indonesia (BPK RI). Performance audit produces conclusion and recommendation on economy, efficiency and effectiveness (3E). BPDs are expected to be regional champions in their respective regions. Data envelopment analysis (DEA) is used to calculate the level of production and operational efficiency of the BPDs while the level of effectiveness is assessed based on the results of performance audit conducted by BPK RI. The results show that both efficiency and effectiveness are not always achieved. This study also identifies BPD that have the highest value of production and operational efficiency and the level of effectiveness. The BPD obtained the highest efficiency and effectiveness values that could be used as a reference for other BPDs to make improvements and become a regional champion in their respective regions.
References
Abidin, Z. & Endri. (2009). Kinerja efisiensi teknis Bank Pembangunan Daerah: Pendekatan data envelopment analysis. Jurnal Akuntansi dan Keuangan, 11(1), 21-29. doi: 10.9744/jak.11.1.pp.%2021-29.
Akbar, B. & Djazuli, A. (2014). Efisiensi BPD pada era sebelum dan sesudah otonomi daerah. Paper presented at The IFABS International Conference, Lisbon, Portugal.
Akomea-Frimpong, I. (2017). Review of Empirical Studies on Bank Efficiency In Emerging Economies. Retrieved from https://www.researchgate.net/publication/322144466_Review_of_Empirical_ Studies_ on_Bank_Efficiency_in_Emerging_Economies.
Asmild, M., Paradi, J. C., Reese, D. N., & Tam, F. (2007). Measuring overall efficiency and effectiveness using DEA. European Journal of Operational Research, 178(1), 305-321. doi:10.1016/j.ejor.2006.01.014.
Barth, J., Lin, C., Ma, Y., Seade, J., & Song, F. M. (2013). Do bank regulation, supervision and monitoring enhance or impede bank efficiency?. Journal of Banking & Finance, 37(8), 2879-2892.
Bell, R.W. & Murphy, N. B. (1968). Costs in commercial banking: A quantitative analysis of bank behavior and its relation to bank regulation. Research Report No. 41. Boston: Federal Reserve Bank of Boston.
BPK RI. (2015a). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Bali Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2015b). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Jambi Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2015c). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Kalimantan Barat Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2015d). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Kalimantan Selatan Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2015e). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Lampung Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2017). Standar Pemeriksaan Keuangan Negara. Jakarta: BPK.
Erasmus, C., & Makina, D. (2014). An empirical study of bank efficiency in South Africa using the standard and alternative approaches to Data Envelopment Analysis (DEA). Journal of Economics and Behavioral Studies, 6(4), 310-317.
Investor Daily Indonesia. (August, 2018). Per Mei 2018, Aset BPD seluruh Indonesia capai Rp 641,19 triliun. Retrieved from https://investor.id/archive/per-mei-2018-aset-bpd-seluruh-indonesia-capai-rp-64119-triliun.
Kumar, S. & Gulati, R. (2010). Measuring efficiency, effectiveness and performance of Indian public sector banks. International Journal of Productivity and Performance Management, 59(1), 51-74. doi: 10.1108/17410401011006112.
Law of The Republic of Indonesia Number 15 of 2004 on The Examination of Management and Responsibility for State Finance (Undang-Undang Nomor 15 Tahun 2004 tentang Pemeriksaan Pengelolaan dan Tanggung Jawab Keuangan Negara).
Lisdayanti, A., Daniel, R.D., Anindita, W. (2013). Efektivitas Kinerja BPD Terhadap Pertumbuhan Ekonomi Daerah. Paper presented at Psikologi, Ekonomi, Sastra, Arsitektur & Teknik Sipil, Bandung, Indonesia. Retrieved from https://ejournal.gunadarma.ac.id /index.php/pesat/article/ view/1231/0.
Mardiasmo. (2009). Akuntansi Sektor Publik. Yogyakarta: Penerbit Andi.
OJK. (2015). Program transformasi BPD: Menjadi bank yang kompetitif, kuat, dan kontributif bagi pembangunan daerah. Retrieved from https://www.ojk.go.id/id/kanal/perbankan/berita-dan-kegiatan/publikasi/Pages/Program-Transformasi-BPD.aspx.
Rai, I G. A. (2008). Audit Kinerja Pada Sektor Publik Konsep Praktek Studi Kasus. Jakarta: Penerbit Salemba Empat.
Sparta. (2017). Analisis Pengaruh Efisiensi dan Kecukupan Modal terhadap Kinerja Keuangan pada Bank Pembangunan Daerah di Indonesia. Jurnal Ekonomi dan Bisnis, 20(1). doi: 10.24914/jeb.v20i1.462.
Statistics Indonesia. (2018). Financial Statistics of State-Owned Enterprises and Regional-Owned Enterprises 2017. Jakarta: Statistics Indonesia.
The 1945 Constitution of Republic of Indonesia (Undang-Undang Dasar Republik Indonesia Tahun 1945). Retrieved from http://peraturan.go.id/inc/view/11e58ce2b70ac2c094ce313132313436.html.
Todhanakasem, W., Lynge, M. J., Primeaux, W. J. Jr., & Newbold, P. (1986). Economies of scale and organization efficiency in banking. Managerial and Decision Economics,7(4), 255-261.
Tsolas, I. E. (2010). Modeling bank branch profitability and effectiveness by means of DEA. International Journal of Productivity and Performance Management, 59(5), 432-451. doi:10.1108/17410401011052878.
Akbar, B. & Djazuli, A. (2014). Efisiensi BPD pada era sebelum dan sesudah otonomi daerah. Paper presented at The IFABS International Conference, Lisbon, Portugal.
Akomea-Frimpong, I. (2017). Review of Empirical Studies on Bank Efficiency In Emerging Economies. Retrieved from https://www.researchgate.net/publication/322144466_Review_of_Empirical_ Studies_ on_Bank_Efficiency_in_Emerging_Economies.
Asmild, M., Paradi, J. C., Reese, D. N., & Tam, F. (2007). Measuring overall efficiency and effectiveness using DEA. European Journal of Operational Research, 178(1), 305-321. doi:10.1016/j.ejor.2006.01.014.
Barth, J., Lin, C., Ma, Y., Seade, J., & Song, F. M. (2013). Do bank regulation, supervision and monitoring enhance or impede bank efficiency?. Journal of Banking & Finance, 37(8), 2879-2892.
Bell, R.W. & Murphy, N. B. (1968). Costs in commercial banking: A quantitative analysis of bank behavior and its relation to bank regulation. Research Report No. 41. Boston: Federal Reserve Bank of Boston.
BPK RI. (2015a). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Bali Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2015b). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Jambi Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2015c). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Kalimantan Barat Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2015d). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Kalimantan Selatan Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2015e). Laporan Hasil Pemeriksaan kinerja efisiensi bank dan efektivitas program bank dalam rangka peningkatan perekonomian daerah pada BPD Lampung Tahun Buku 2014 dan Semester I 2015. Jakarta: BPK RI.
BPK RI. (2017). Standar Pemeriksaan Keuangan Negara. Jakarta: BPK.
Erasmus, C., & Makina, D. (2014). An empirical study of bank efficiency in South Africa using the standard and alternative approaches to Data Envelopment Analysis (DEA). Journal of Economics and Behavioral Studies, 6(4), 310-317.
Investor Daily Indonesia. (August, 2018). Per Mei 2018, Aset BPD seluruh Indonesia capai Rp 641,19 triliun. Retrieved from https://investor.id/archive/per-mei-2018-aset-bpd-seluruh-indonesia-capai-rp-64119-triliun.
Kumar, S. & Gulati, R. (2010). Measuring efficiency, effectiveness and performance of Indian public sector banks. International Journal of Productivity and Performance Management, 59(1), 51-74. doi: 10.1108/17410401011006112.
Law of The Republic of Indonesia Number 15 of 2004 on The Examination of Management and Responsibility for State Finance (Undang-Undang Nomor 15 Tahun 2004 tentang Pemeriksaan Pengelolaan dan Tanggung Jawab Keuangan Negara).
Lisdayanti, A., Daniel, R.D., Anindita, W. (2013). Efektivitas Kinerja BPD Terhadap Pertumbuhan Ekonomi Daerah. Paper presented at Psikologi, Ekonomi, Sastra, Arsitektur & Teknik Sipil, Bandung, Indonesia. Retrieved from https://ejournal.gunadarma.ac.id /index.php/pesat/article/ view/1231/0.
Mardiasmo. (2009). Akuntansi Sektor Publik. Yogyakarta: Penerbit Andi.
OJK. (2015). Program transformasi BPD: Menjadi bank yang kompetitif, kuat, dan kontributif bagi pembangunan daerah. Retrieved from https://www.ojk.go.id/id/kanal/perbankan/berita-dan-kegiatan/publikasi/Pages/Program-Transformasi-BPD.aspx.
Rai, I G. A. (2008). Audit Kinerja Pada Sektor Publik Konsep Praktek Studi Kasus. Jakarta: Penerbit Salemba Empat.
Sparta. (2017). Analisis Pengaruh Efisiensi dan Kecukupan Modal terhadap Kinerja Keuangan pada Bank Pembangunan Daerah di Indonesia. Jurnal Ekonomi dan Bisnis, 20(1). doi: 10.24914/jeb.v20i1.462.
Statistics Indonesia. (2018). Financial Statistics of State-Owned Enterprises and Regional-Owned Enterprises 2017. Jakarta: Statistics Indonesia.
The 1945 Constitution of Republic of Indonesia (Undang-Undang Dasar Republik Indonesia Tahun 1945). Retrieved from http://peraturan.go.id/inc/view/11e58ce2b70ac2c094ce313132313436.html.
Todhanakasem, W., Lynge, M. J., Primeaux, W. J. Jr., & Newbold, P. (1986). Economies of scale and organization efficiency in banking. Managerial and Decision Economics,7(4), 255-261.
Tsolas, I. E. (2010). Modeling bank branch profitability and effectiveness by means of DEA. International Journal of Productivity and Performance Management, 59(5), 432-451. doi:10.1108/17410401011052878.
Read More
Downloads
Submitted
2019-06-27
Accepted
2019-06-28
Published
2019-06-30
How to Cite
Akbar, B., Djazuli, A., & Jariyatna, J. (2019). MEASURING EFFICIENCY AND EFFECTIVENESS OF INDONESIAN REGIONAL DEVELOPMENT BANKS. Jurnal Tata Kelola Dan Akuntabilitas Keuangan Negara, 5(1), 90–101. https://doi.org/10.28986/jtaken.v5i1.309
Issue
Section
Articles
License
Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara is licensed under
a Creative Commons Attribution-ShareAlike 4.0 International License
