Indonesia Conference Directory

This study aims to measure the efficiency of Islamic cooperatives in the Special Region of Yogyakarta (DIY) during 2016-2017. There are 16 Islamic co-operatives being analyzed which are selected based on the purposive sampling method. Then the data of financial reports from those institutions are analysed with data envelopment analysis (DEA) with an intermediation approach in answering the research questions. The input variables being analyzed in this study are total deposits and operating costs, while the output variables are financing and other operating income. The results show that most of these microfinance institutions had poor financial performance. In addition, it was also identified that only 19% of the total 16 Islamic cooperatives had a high efficiency in their operating activity. In increasing the efficiency of Islamic cooperatives, the potential variable which could be developed is other operating income, while the operational costs are expected to be reduced, given the results of further financial report analysis that operating expenses have the most substantial proportion of the total Islamic co-operatives costs.