PERBANDINGAN TINGKAT EFISIENSI BANK UMUM KONVENSIONAL DI INDONESIA DENGAN PENDEKATAN DATA ENVELOPMENT ANALYSIS (DEA) DAN STOCHASTIC FRONTIER ANALYSIS (SFA) PERIODE 2018-2022

This study aims to compare the efficiency levels of conventional commercial banks in Indonesia using two approaches, namely Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) for the period 2018-2022. Bank efficiency is a crucial indicator in assessing banking performance, particularly in facing economic challenges and competition within the banking industry. DEA is used to measure efficiency through a non-parametric approach, while SFA is a parametric approach that accounts for random errors in the production process. This study measures bank efficiency based on several input variables such as deposits, total fixed assets, and operational costs, as well as output variables like total loans and operational income. The results indicate differences in efficiency levels between the two methods and highlight which banks are more efficient in resource management. Therefore, this research provides insights for the banking sector in improving operational efficiency and helps policymakers in developing better strategies for Indonesia's banking sector.

Keywords: Bank Efficiency, Data Envelopment Analysis (DEA), Stochastic Frontier Analysis (SFA), Conventional Banking