In the midst of economic challenges and uncertainty due to the pandemic, BPRS as part of the banking industry has a specific goal, namely to provide financial services and products to people with a weak economic level and also the MSME sector, therefore it is necessary to accelerate improvements in the Islamic rural banks (BPRS) industry. This study aims to measure the relative efficiency level of BPRS in Indonesia, see the impact of the pandemic on BPRS operations and compare the efficiency level of BPRS spread across Java and outside Java. This study uses a sample of 92 BPRS in Indonesia with an observation period from 2016 to 2021. This research method uses Data Envelopment Analysis (DEA) with secondary data sourced from the financial statements of each BPRS on the OJK official website. The input variables used include third-party funds, fixed assets and operating expenses. Meanwhile, the output variable consists of financing provided and operating income. The results showed that the average BPRS in Indonesia from the 2016-2021 period fluctuated. Then the CRS and VRS analysis found that BPRS outside Java were more efficient than BPRS spread across Java. Then, based on the trend analysis, the efficiency of BPRS in Indonesia has a fluctuating trend. Furthermore, in the efficiency analysis during the Covid-19 pandemic, there was a continuous decline in the efficiency level of the BPRS, although the decline that occurred was still small. This study also analyzes the potential improvement for program improvement that causes inefficiency of the input and output variables. And in general, the biggest cause of BPRS inefficiency comes from the output variable, namely the financing provided. This study also provides recommendations to BPR practitioners, regulators, and academics as a basis for decision making in achieving optimal efficiency and for further research
The Islamic finance industry in Indonesia is currently a global concern, one of which is financial institutions, so productivity measurement is essential for BPRS in Indonesia. This study tries to analyze the BCC model as a basic model to see the level of productivity in 92 BPRS using the Malmquist productivity index, both in terms of changes in efficiency and changes in technology during the six-year observation period (2016-2021) using the Malmquist Index. There are several findings from this study. First, the overall level of productivity in BPRS shows an increase, and it is known that changes in efficiency and technology affect the increase in productivity of BPRS. Furthermore, in the analysis of each BPRS, it is known that the productivity of the BPRS fluctuates from year to year. Second, the regional study between Java and Non-Java found that BPRS in Java has higher productivity levels than BPRS outside Java, considering that Java is the center of the Indonesian economy and the impact of high technological changes on BPRS in Java. Third, the following finding is related to the productivity of BPRS before and after the Covid-19 pandemic, which showed a decline during the Covid-19 pandemic. Still, the decline was not significant when viewed from the results of statistical tests. Then based on the analysis of the Malmquist Index quadrant, it shows that the BPRS dominates quadrant 2 with the category of high technology and low efficiency, namely back to 25 BPRS, then followed by quadrant 4 with the type of technology and low efficiency, opening 24 BPRS, next is quadrant 3 with a total of 23 BPRS and quadrant one which has the highest category reaches 20 BPRS.
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