Indonesia Conference Directory

ABSTRACT This study aims to measure the efficiency level of the largest banks in Indonesia based on bank categories, the period 2013-2017 using the Data Envelopment Analysis (DEA) method, with Win4DEAP software. The approach used in selecting inputs and outputs is an intermediation approach. Input factors used are assets, funds, and workforce expenses. The output factor used is credit or financing and income. The results of the study found that (1) the use of asset inputs, funds, and average labor costs increased. And the use of credit or financing output and income also increases on average. (2) The use of inputs and outputs of each bank from 2013-2017 using DEA generally achieves optimum efficiency, only one bank has not been fully optimized. The model used is DEA assuming Variable Return To Scale (VRS). (3) The efficiency of the scale of each bank with the DEA method is a bank that is at the stage of the radial movement and slack movment. In such circumstances, it can be interpreted that it is necessary to evaluate inputs and outputs to improve the orginal value according to the project value, so that optimal efficiency is generated. Compared with the results of the BOPO assessment in general, there is no significant difference.