CONVENTIONAL VERSUS SHARIA MICROBANKS EFFICIENCY: CASE FROM WEST JAVA PROVINCE, INDONESIA

• Main Author: Wayan Bagus Surya Murtika (NIM 19014172), I
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22660
• Institution: Institut Teknologi Bandung

Microbanks, whether conventional (Bank Perkreditan Rakyat/BPR) or <br /> <br /> sharia (Bank Perkreditan Rakyat Syariah/BPRS), continue to grow along with the <br /> <br /> development of small and medium business development in general. BPRS in its <br /> <br /> development continues to increase along with the development of sharia economy <br /> <br /> that is increasingly in demand, supported that Indonesia is the country with the <br /> <br /> largest Muslim population in the world. The sharia microbanks or Bank Perkreditan <br /> <br /> Rakyat Syariah (BPRS), it’s profitability levels nationwide showed a trend of data <br /> <br /> continues to increase, from the past years, but the BPR is inversely related to the <br /> <br /> BPRS, which showed a declining trend during the same period, although BPR <br /> <br /> existed beforehand than BPRS. Therefore, in this, the research problem is to study <br /> <br /> differences in efficiency through Data Envelopment Analysis (DEA), between the <br /> <br /> conventional microbanks (BPR) and sharia microbanks (BPRS) cases in West Java <br /> <br /> province, as the center of BPR and BPRS development in Indonesia. <br /> <br /> The results revealed that there was no difference in efficiency between BPR <br /> <br /> and BPRS. BPR is not more efficient than the BPRS. Thus, BPRS despite the <br /> <br /> economic scale is smaller than BPR but can achieve the same efficiency as BPR. <br /> <br /> Both types of BPR do not provide the criteria for productivity level. Only in one <br /> <br /> year, BPR and BPRS meet productivity criteria. In aggregate, 3 BPRs meet the <br /> <br /> criteria of productivity change in the total, while the BPRS only two that fulfill <br /> <br /> these criteria. Therefore, BPR basically descriptive better level of productivity <br /> <br /> compared to the BPRS.