Author
Listed:
- Tbia Jasmina
(Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta)
- Miranda S. Goeltom
(Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta.)
Abstract
The financial sectors in Indonesia have grown rapidly since the beginning of 1980. The role of hanking industries as financial intermediaries have been dramatically changed after the deregulation in 1988. There were many hanks, which created high competitions among them. Therefore they have to he efficient in order to win the competition as well as to support the growing investment. The inefficiency occurred in the hanking industry would hit investment siruse the cost of capital (investment) would increase. This article looks more deeply at the efficiency in the hanking sectors in Indonesia. Based on Frontier Cost Function Models, the author shows that the performance, as well as the efficiency in the hanking sectors in Indonesia has been fluctuated since 1988. There was an improvement on one side, hut there was also a deterioration on the other side. Credit expansion without careful consideration, good calculation hrought a negative impact to the economy as a whole. This situation was then corrected by conducting another deregulation package. Hence, it is important to have a broader thought before implementing policies.
Suggested Citation
Tbia Jasmina & Miranda S. Goeltom, 1995.
"Analisis Efisiensi Perbankan Indonesia: Metode Pengukuran Fungsi Biaya Frontier,"
Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 43, pages 251-284, September.
Handle:
RePEc:lpe:efijnl:199514
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