Analysis Of Technical Efficiency Of Health Function Expenditure In Indonesia 2020-2024

Puput Puspita Sari; Ambya; Emi Maimunah

doi:10.63922/ijebir.v5i05.5981

Puput Puspita Sari Department of Development Economics, Faculty of Economics and Business, Universitas Lampung
Ambya Department of Development Economics, Faculty of Economics and Business, Universitas Lampung
Emi Maimunah Department of Development Economics, Faculty of Economics and Business, Universitas Lampung

DOI: https://doi.org/10.63922/ijebir.v5i05.5981

Keywords: Technical Efficiency, Health Expenditure, Data Envelopment Analysis, COVID-19 Pandemic, Fiscal Decentralization.

Abstract

This study analyzes the level of technical efficiency of health function expenditure in 34 provincial governments in Indonesia during the 2020-2024 period. Using the Data Envelopment Analysis (DEA) method with an input-oriented BCC model and the Variable Return to Scale (VRS) assumption, this study measures relative efficiency using one input variable (realized health expenditure per capita) and four output variables (life expectancy, maternal mortality rate, infant mortality rate, and stunting prevalence). The results show that the average technical efficiency is still relatively low, ranging from 0.460 to 0.547, with significant disparities between provinces. DI Yogyakarta, East Kalimantan, and West Sulawesi consistently achieved perfect efficiency (TE=1), making them benchmark. In contrast, DKI Jakarta, East Java, and West Java were the provinces with the highest levels of inefficiency, with potential budget savings (radial movement) exceeding IDR 10,000 billion. A comparison between the COVID-19 pandemic phase (2020-2021) and the recovery phase (2022-2024) shows an average efficiency increase of 6.20 percent, although some provinces experienced a drastic decline. These findings indicate that the size of the budget does not guarantee efficiency; the effectiveness of governance and the quality of program implementation are the main determining factors.

References

Adriani, E. (2019). Measurement of Human Capital (A Literature Study). J-MAS, 4(1), 176.

Charnes, A., Cooper, W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429-444.

Gupta, S., & Verhoeven, M. (2001). The efficiency of government expenditure: experiences from Africa. Journal of Policy Modeling, 23(4), 433-467.

Karlina, A., & Rosyadi, R. (2025). Determinants of Infant Mortality Rate in West Kalimantan. Journal of Economics and Business UBS, 14(1), 8-20.

Maimunah, E. (2015). Determinants of Technical Efficiency in the Banana Chip Industry in Bandar Lampung City. JEP, 4, 87.

Pribadi, F. A., & Setijaningrum, E. (2023). Analysis of Health Financing Principles in Supporting Universal Health Coverage in Indonesia. Jejaring Administrasi Publik, 15(2), 60-78.

Radityo, M. I., & Arianti, F. (2023). Efficiency Analysis of Regional Government Health Sector Budget Expenditure in the Regencies/Cities of Central Java Province, 2017-2020. BISECER, 6.

Rahmawati, I., & Muhsyaf, S. A. (2025). Efficiency Analysis of Health and Education Budget Expenditure Using the DEA Method, 2021-2023. Jurnal Ilmiah Global Education, 6(2), 395-405.

Riwukore, J. R., Habaora, F., & Terttiaavini. (2022). Good Governance in Measuring State Institution Performance (Review). Jurnal Pemerintahan Dan Politik, 7(1).

Sani, S. R., Fitri, C. D., Amri, K., Muliadi, M., & Ikhsan, I. (2022). The Impact of the COVID-19 Pandemic on Unemployment, Poverty, and Income Inequality. Ekonomis, 6(1), 107.

Sihaloho, E. D., Rijoly, J. C. D., & Siregar, A. Y. M. (2019). Efficiency Analysis of Health Expenditure in Maluku Province. Jurnal Akuntansi & Ekonomi FE. UN PGRI Kediri, 4(2).

UNICEF. (2021). UNICEF Conceptual Framework on Maternal and Child Nutrition. New York: United Nations Children's Fund.

Utami, B. S. A., Basya, M. M., & Anindhita, A. Y. (2021). Efficiency of Education Sector Budget Expenditure in Regencies/Cities in East Java Province, 2018. Equilibrium, 17(2).

WHO. (2010). Monitoring the building blocks of health systems: a handbook of indicators and their measurement strategies. World Health Organization.

Yulianti, & Daud. (2021). Theory of Government Expenditure Development: A Sharia Economic Study. JALHu, 7(2), 119-124.