: This Research goals are to examine and to analyze the level of banking efficiencyin Indonesia using SFA, to examine the impact of risk on bank efficiency in Indonesia, toexamine the effect of the control variables and specific macroeconomic banks to the level ofrisk and banking efficiency in Indonesia. The sample are 107 conventional banks inIndonesia and the number of observation in 1177 during the period 2001 to 2011. Efficiencymeasurement uses stochastic frontier approach bank and bank risk measurement uses the ratioof non-performing loans. The dependent variable used in the first study equation is nonperformingloans and in the second equation is the bank score efficiency. Control variablesare capital adequacy, asset growth, the percentage of foreign ownership, the percentage ofgovernment ownership, the percentage of public ownership, GDP growth and the bank loangrowth. The result shows that the average level of banking efficiency during the studyperiod is 69.98%. Overall the average level of conventional banks efficiency per yearincrease from 61.26% in 2001 to 78.76% in 2011. This study provides empirical evidencethat the risk of banks affect bank efficiency. Banks efficiency level are positively significantinfluenced mainly by the growth of GDP and the level of efficiency last year and negativelysignificant influenced by the bank risk. Empirical results of this study have implications forpractitioners banks, institutions banking authorities or the FSA and the development of thetheory of risk associated with relationship banks and banking efficiency as well asconsideration of other factors that influence risk and efficiency as the results of this study.