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DEA-Based Efficiency Analysis of State-Owned and Private Sharia Companies in the Coals, Metal, and Mineral Mining Sector on IDX

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Goal
: This study aims to assess the efficiency scores of Shariah
compliant mining companies in Indonesia's coal, metals, and minerals sectors from
2017 to 2023. The study aims to fill existing research gaps by focusing on Islamic
companies listed on the Indonesia Stock Exchange (IDX), which are continuously
included in the ISSI and frequently in the JII list. Additionally, the study seeks to
compare the efficiency scores between state-owned and private shariah-compliant
mining companies, utilising the Data Envelopment Analysis (DEA) method.
Method
: This quantitative study evaluates the efficiency of six Shariah
compliant mining companies using the Data Envelopment Analysis (DEA)
approach, explicitly applying the BCC/VRS model with output orientation. The
sample comprises 42 Decision-Making Units (DMUs), including three state-owned
(SOEs) and three private companies, analysed over 2017–2023. Input variables
include Total Fixed Assets, Personnel Expenses, and Operating Expenses, with
Revenue as the output. Efficiency scores are calculated and correlated using
Pearson Correlation. Additionally, the Mann-Whitney U test is employed to assess
significant differences in efficiency between State-owned and private companies.
Fact/Finding : The study finds that PT Vale Indonesia Tbk (INCO) is the most
efficient Shariah-compliant mining company, with an average efficiency score of
0.93, followed by PT Adaro Energy Indonesia Tbk (ADRO) at 0.8. INCO's high
efficiency is driven by solid revenue despite heavy reliance on fixed assets, while
ADRO shows potential for improvement in managing expenses. PT Aneka
Tambang Tbk (ANTM) is the least efficient, with a score of 0.47, indicating a need
for significant cost optimisation. The average efficiency across the six companies
is 0.73, with INCO, ADRO, PT Timah Tbk (TINS), and Merdeka Copper Gold
(MDKA) classified as efficient. Pearson correlation analysis reveals that revenue is
a crucial driver of efficiency. At the same time, the impact of fixed assets varies
between companies, highlighting different efficiency strategies between state
owned and private companies.

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Availability

Detail Information

Series Title

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Call Number

REF 332.6 SLA d

Publisher

Bogor : IAI Takia., 2024

Collation

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Language

English

ISBN/ISSN

NIM.S.2010101118

Classification

332.6

Content Type

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Media Type

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Carrier Type

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Edition

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Subject(s)

Technical Efficiency

Specific Detail Info

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Statement of Responsibility

Syifa Nursa'Adah Slamet

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