Efficiency Performance of Indonesia's Public and Private Sector Firms

The efficiency and productivity performance of state-owned enterprises (SOEs) has been in questioned for years until now. Not only because they owned by the government, but also because they must adhere to multiple goals,such as serve the public interest, known as social goals and business goal. This condition makes it unfair to compare their performance to their counterparts: private firms. This book provides a decent method to evaluate SOEs, so their performance be comparable to the private ones. The method provides a tool for measuring and evaluating firm’s performance beyond those available from accounting ratios measure, that are not sufficient to judge efficiency. Therefore the author also adopted production efficiency measures for performance assessment of state and private firms,using the Data Envelopment Analysis (DEA). Therefore, it is possible to compare these different types of firms. This ratio is thought to be superior to the use of common productivity measures from financial ratios, which is often partial productivity without controlling the effect of capital productivity.