SUMMARY
Research aims: In Indonesia, there are regulatory developments that require companies to implement a sustainable manner in business activities. Based on Financial Service Authority Regulation no. 51/2017 regarding sustainable finance, Bank BUKU 3 and 4 are the first parties required to run and publish a sustainability report. Therefore it is essential to evaluate the performance of a bank implementing sustainable banking. This study aims to examine sustainable banking disclosure on bank efficiency in Indonesia.Design/Methodology/Approach: We used 70 observations of banks listed on the Indonesian stock exchange from 2015 to 2019. The method for testing bank efficiency uses Data Envelopment Analysis (DEA). In the second stage of the analysis, researchers used a panel data regression method.Research findings: First, the results show that commercial banks BUKU 3, 4 in Indonesia are still inefficient. Second, the article also found that sustainable banking disclosure has a positive effect on bank efficiency.Theoretical contribution/Originality: This study's results constitute empirical evidence related to stakeholder theory and provide empirical evidence regarding the effect of sustainable banking on bank efficiency.Practitioner/Policy implication: This research contributes to bank management to implement sustainable banking because it can increase bank efficiency.