Ranking the Performance of Islamic Rural Banks in Indonesia Using a Super-Efficiency DEA Model
Mohamad Andri Ibrahim

Universitas Airlangga and Universitas Islam Bandung

Abstract

Islamic Rural Banks (BPRS) are critical to Indonesia^s financial inclusion and sustainable development goals. However, traditional Data Envelopment Analysis (DEA) models cannot differentiate between efficient units, as all score 1.0, limiting practical benchmarking for policymakers and managers. This study employs a Super-Efficiency DEA model to overcome this limitation and rank the performance of 154 BPRS in Indonesia over a six-year period (2017-2022). The results successfully provide a complete ranking of all banks, identifying a small group of ^super-efficient^ BPRS that serve as robust benchmarks. The study further reveals significant performance disparities within the industry. The findings offer valuable insights for regulators like OJK to promote best practices and for BPRS management to identify areas for improvement, ultimately enhancing the sector^s stability and outreach.

Keywords: Data Envelopment Analysis, Super-Efficiency, Islamic Banking, BPRS, Performance Ranking, Indonesia.

Topic: Economic Welfare in Terms of Islamic Perspective