The Efficiency of Formal Microfinance in Indonesia: Using Data Envelopment Analysis Application

Farida Farida (), Irwan R. Osman (), Agus Kurniawan Lim () and Nur Wahyuni ()
Additional contact information
Farida Farida: Faculty of Economics, Persada YAI University, Jakarta, Indonesia.
Irwan R. Osman: Faculty of Economics, STIE YAI, Jakarta, Indonesia.
Agus Kurniawan Lim: Faculty of Economics, Persada YAI University, Jakarta, Indonesia.
Nur Wahyuni: Faculty of Economics, Persada YAI University, Jakarta, Indonesia.

Iranian Economic Review (IER), 2018, vol. 22, issue 3, 791-814

Abstract: One of the key success factors of the financial institution sustainability is operational efficiencies. Using Data Envelopment Analysis (DEA), this paper measures the relative efficiency of the executing banking units of people business credit (KUR) program in Indonesia. Sample data of this study were obtained from all banking units from banks providing KUR located in the district of Pati, Central Java - district with the largest KUR receiver. This study consists of two stages of analyses: (1) it is found that 18 of the 35 banking units (51.43%) are in the scale efficiency, with units receiving 100% efficiency score being called efficient; (2) an output target is shown for the purpose of maximizing the output of the KUR disbursement without additional inputs.

Keywords: Bank; Microfinance; DEA; Efficiency; Sustainability. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
ftp://80.66.179.253/eut/journl/20183-10.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eut:journl:v:22:y:2018:i:3:p:791

Access Statistics for this article

Iranian Economic Review (IER) is currently edited by Dr.Hossien Abbasinejad

More articles in Iranian Economic Review (IER) from Faculty of Economics,University of Tehran.Tehran,Iran Contact information at EDIRC.
Bibliographic data for series maintained by [z.rahimalipour] ().