Efficiency and Productivity of Textile Industries and Products in Central Java

Abstract

The aim of this research was to analyze the efficiency and productivity of textile industries and textile products of Central Java in 2010-2011. The data used was 10 Indonesian Standard Industrial Classification (ISIC) four digits of the Central Bureau of Statistics, Central Java. The variables used in this research were output value for output variable, and the input variables were the cost of raw and auxiliary materials, labor expenses, purchased electricity, and fuel and lubricant expenses. This research used the analysis tools of Data Envelopment Analysis (DEA) and Malmquist Productivity Index. The results are, for the years of 2010-2011, the efficient industries, according to the measurement of CRS and VRS were the industries of processing and spinning of textile fibers, other textile industries and the industries of knitted and embroidered apparel. Overall the total productivity factors of textile industries and textile products have increased mainly due to the changes in technology. To develop the textile industries and products in Central Java in order to have the competitiveness power, improvement and repair are necessary both internally within the companies and in the business environments/ climate in the country which includes the fields of finance, energy, labor, marketing, technology and infrastructure.
Keywords: Efficiency, productivity, textile, DEA, Malmquist Index