Malmquist Index Productivity of Indonesian Bank: Based on Commercial Bank Business Group
Fajra Octrina1, Ina Primiana2, Mokhamad Anwar3, Aldrin Herwany4, Moh. Rusnoto Susanto5
1Fajra Octrina, Polytechnic LP3I Bandung, Bandung, Indonesia.
2Ina Primiana, Padjadjaran University, Bandung, Indonesia.
3Mokhamad Anwar, Padjadjaran University, Bandung, Indonesia.
4Aldrin Herwany, Padjadjaran University, Bandung, Indonesia.
5Moh. Rusnoto Susanto, Universitas Sarjanawiyata Tamansiswa, Yogyakarta, Indonesia.
Manuscript received on 16 June 2019 | Revised Manuscript received on 11 July 2019 | Manuscript Published on 17 July 2019 | PP: 688-694 | Volume-8 Issue-1C2 May 2019 | Retrieval Number: A11150581C219/2019©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This study aims to measure the level of productivity of conventional banks in Indonesia during the period of 2012 – 2016 using the method of Malmquist Productivity Index (MPI). Of the 50 bank samples, there are only five banks which have the composition of EFFCH, TECHCH, PECH, SECK and TFPCH ≥ 1, namely Anglomas Bank, Bank Fama, Lampung BPD, Bank of China Limited, JP Morgan Bank, and Bank of Tokyo Mitsubishi. It is because the changes in efficiency and technology are seen to less optimally contribute to enhance the productivity. Design: Malmquist Productivity Index (MPI) method using DEAP 2.1 software.Findings: It shows that banks in the category of BUKU 4 are not yet productive. Moreover, of the total, there are only five banks which indicate the composition of EFFCH, TECHCH, PECH, SECK and TFPCH ≥ 1, namely Anglomas Bank, Bank Fama, Lampung BPD, Bank of China Limited, JP Morgan Bank, and Bank of Tokyo Mitsubishi, all of which are classified into BUKU 1, 2 and 3.Originality and value: This research was conducted to analyze the extent to which the banking sector are productive when viewed based on the Commercial Bank Business Group (BUKU) classification which had not previously been carried out.
Keywords: Banking Industry, Total Factor of Productivity, Malmquist Productivity Index.
Scope of the Article: e-governance, e-Commerce, e-business, e-Learning