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Technical Efficiency and Its Determinants of the State-owned Enterprises in the Indonesian Manufacturing Industry


  • Maman Setiawan

    () (Faculty of Economics and Business, University of Padjadjaran)

  • Erni Tisnawati Sule

    (Faculty of Economics and Business, University of Padjadjaran)


This research investigates technical efficiency and its determinants of the state-owned enterprises (SOEs) in the Indonesian manufacturing industry. This study applies bootstrapped data envelopment analysis to calculate the technical efficiency score at the first stage and panel data technique to estimate the effects of the determinants on the technical efficiency at the second stage. This research uses firm-level survey data classified at the five-digit International Standard Industrial Classification (ISIC) level to estimate the technical efficiency score. This research finds that the SOEs in the Indonesian manufacturing are technically inefficient. The technical efficiency is affected by the firm size, location, level of technology, export engagement and economic and financial crisis.

Suggested Citation

  • Maman Setiawan & Erni Tisnawati Sule, 2018. "Technical Efficiency and Its Determinants of the State-owned Enterprises in the Indonesian Manufacturing Industry," Working Papers in Economics and Development Studies (WoPEDS) 201802, Department of Economics, Padjadjaran University, revised Aug 2018.
  • Handle: RePEc:unp:wpaper:201802

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    References listed on IDEAS

    1. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    2. Bozec, Richard & Dia, Mohamed, 2007. "Board structure and firm technical efficiency: Evidence from Canadian state-owned enterprises," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1734-1750, March.
    3. Athanassopoulos, Antreas D. & Giokas, Dimitris, 1998. "Technical efficiency and economies of scale in state owned enterprises: The Hellenic telecommunications organisation," European Journal of Operational Research, Elsevier, vol. 107(1), pages 62-75, May.
    4. Magdalena Kapelko & Alfons Oude Lansink, 2015. "Technical efficiency and its determinants in the Spanish construction sector pre- and post-financial crisis," International Journal of Strategic Property Management, Taylor & Francis Journals, vol. 19(1), pages 96-109, March.
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    More about this item


    Indonesian state-owned enterprises; manufacturing industry; technical efficiency; bootstrapped data envelopment analysis.;

    JEL classification:

    • L0 - Industrial Organization - - General

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