ANALISIS STRUKTUR BIAYA DAN KINERJA OPERASIONAL BANK UMUM DI INDONESIA

https://doi.org/10.22146/jieb.6592

Erwinta Siswadi(1*), Wilson Arafat(2)

(1) Bank BTN, Divisi Treasury
(2) Universitas Gadjah Mada
(*) Corresponding Author

Abstract


The “turbulence” that becomes a characteristic in business environment now has
leaded the business to the very tight competition (known as hypercompetition), and it also influenced banking industry.
With that situation, efficient and effective at cost structure and operational performance
will determine the bank performance either survive or not. For that reason, the study will
be conducted to analyze the cost structure and bank performance in Indonesia using two
approaches: (1) Parametric approach based on translog cost function framework to
analyze cost structure in banking industry in Indonesia; (2) Non-Parametric approach
based on linear programming framework to evaluate the operational performance in
Indonesian banking that shown by efficiency index.
The study used data from 50 banks that have the biggest assets in Indonesia during
1998-2002 periods. According to the analysis, it showed “the red line” that strictly stated:
(1) Using parametric approach, it showed that cost structure in Indonesian banking has
fulfilled translog cost function. Indonesian banking industry is now facing “scale of
economies” and “scope of economies” conditions. The research has shown that banks with the bigger assets showed higher level of scale of economies. (2) Based on non-parametric approach, it indicated that banking in Indonesia could reduce their operational cost up to 89,40% comparing with their present operational cost. Cost inefficiency mainly caused by inappropriate technical efficiency that can be eliminated if only banking industry in Indonesia have used input components optimally.

Keywords: Cost Structure, Operational Performance, Parametric Approach, Non-
Parametric Approach.





DOI: https://doi.org/10.22146/jieb.6592

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