Technical Education Efficiency Analysis with Data Envelopments Analysis approach and its effect using TO BIT Regression

Abstract

The background of this research is to find technical education efficiency analysis (CRS, VRS, and SE) for eleven conventional commercial banks in Indonesia with data between 2010-2019 and the effect of this efficiency on several bank ratio variables (LNTA, ROA, CAR, LDR, NPF) and macro variables (inflation, real GDP, unemployment, us exchange). The method used for technical education efficiency analysis uses a Data Envelopments Analysis (DEA) approach and the effect of efficiency uses TOBIT Regression, using the statistical computer programming language R, with the dear library for DEA and the VGAM library for TOBIT regression. To obtain fairer efficiency results, conventional commercial bank data is classified into 3 types according to the core capital owned by the bank called BUKU (commercial bank based on business activity). The results of the study conclude that the technical education efficiency analysis of conventional commercial banking in Indonesia between 2010-2019 shows that it is not worth 1 (100% efficient), but close to a value of <1 of 0.97 (CRS 97% efficient), 0.984 (VRS 98.4% efficient), and 0.985 (Efficiency Scale 98.5%). To conclude, efficiency is categorized based on 3 types of core banking capital, for BUKU 3 types of 0.983 (CRS), 0.996 (VRS), and 0.987 (SE), for BUKU 2 types of 0.977 (CRS), 0986 (VRS), and 0.99 (SE), for the type of BUKU 1 of 0.963 (CRS), 0.98 (VRS), and 0.98 (SE). The results of the slack analysis show that the inefficiency of the DMU of excess labor wages is 3.45%, the management of the DMU of deposits is not efficient at 0.82%, and the use of the DMU of assets is inefficient at 0.47%. So that the impact on the DMU financing that should be channeled increases by 0.12% and the DMU income that should be able to get an increase of 1.39%, if efficiency can be obtained 100%. The TOBIT regression results show that only CAR (p-value 0.0052) with a coefficient value of -0.0020915960 and LDR (p-value 0.00155) with a coefficient value of 0.0014212500 which significantly affects the technical education efficiency analysis (CRS used as a dependent) of conventional commercial banks in Indonesia, with R square value is 51.76%.