Evaluation of Production Efficiency using Data Envelopment Analysis at PT. Perkebunan Nusantara XI

Abstract

This study develops an evaluation of production efficiency at PT Perkebunan Nusantara XI. Since the domestic sugarcane-based industry today faces many challenges of change. From 2017 through 2018, Indonesia became the largest importer in the world. The high demand for sugar imports is caused by national production that has not met domestic needs. PTPN XI is a state-owned enterprise (SOEs) engaged in agribusiness with the core business of producing sugar. At present, PTPN XI has a problem, which is decreasing production efficiency. This study attempts to design and identify the measurement indicators used to evaluate the production efficiency of PTPN XI using Data Envelopment Analysis. The research objective will be accomplished through the analysis of questioners filled by the expert in the company. Based on the calculations and peer group decisions obtained by several factories that are being referenced, including the Pagottan Sugar Factory, Panji, Prajekan, Wonolangan, and Wringin Anom. Variables that significantly affect the efficiency of PT Perkebunan Nusantara XI's sugar mills are labor, electricity costs, and production capacity variables.