ABSTRACT
This research aims to measure the efficiency level of the largest banks in Indonesia according to the categories of ownership, status, and price determination for 2013–2017 using the data envelopment analysis (DEA) method, with the Win4DEAP software. The intermediation approach was used in selecting inputs and outputs variables. Input factors used were assets, funds, and workforce expenses. The output factors used were credit or financing and income. The results showed that (1) the use of input assets, funds, and labor costs on average increased, and in general the use of credit or financing output and income also increased, (2) the use of inputs and outputs of each bank during 2013–2017 by using DEA generally achieved optimum efficiency, and only one bank that has not been fully optimized. The model used was DEA with the assumption of variable return to scale, and (3) based on the efficiency scale of each bank using the DEA method, there were banks that were at the radial movement and slack movement stages. In such circumstances, it can be interpreted that it is necessary to evaluate inputs and outputs for improvement, so that the original value matches the project value to generate optimal efficiency. Compared to the results of the operational efficiency ratio assessment, generally there is no significant difference.
