Alternative Performance Measurement for Road Management Agencies Using Data Envelopment Analysis Method

Abstract

Performance assessment is the most important phase in each organization cycle to determine whether the organization has been functioning in accordance to the fundamental purpose of the organization existence. This is also true for the National Road Implementation Agencies (BBPJN/BPJN) as the technical supporting units of the Directorate General of Bina Marga - Ministry of Public Works that are responsible for the maintenance and functioning of the national roads in Indonesia. As public institution, currently BBPJNs and BPJNs are accountable for their performances and to be assessed in accordance to government assessment mechanism using Performance Report of Government Institution - LAKIP. Departing from some weakness on the current mechanism, this paper is to discuss the development a performance assessment model using DEA (Data Envelopment Analysis) approach as a complementary model to the existing performance measurement model. Using DEA approach, relative efficiency amongst road agencies can be compared, which will then can be utilized as the basis for decision by the Directorate General of Bina Marga on BBPJN/BPJN’s future workplan and budgeting

Keywords

• road services agencies
• performance assessment model
• dea