I Wayan Ruspendi Junaedi, I Wayan Damayana, Dermawan Waruwu


The Village Credit Institution in Bali as a savings and loan business entity owned by a customary village, functions and aims primarily to encourage the economic development of rural communities through targeted savings and effective capital distribution. From the description above, the problem research formulation is how the existence and function of LPD in improving the economy of the Balinese people. The purpose of this research is to determine of the Model and the function of LPDs in improving the economy of the Balinese people. The research methodology is a qualitative descriptive method with observations, interviews, triangulation and documentation. The findings and results of the study are (1). Village Credit Institutions (LPD) as a financial institution that carries out the activities of collecting and channeling community funds operating in a customary village administration area on the basis of kinship between villagers. (2). By relying on the number of villagers and the close family ties within the LPD village, they continue to develop their institutions. (3). LPD has a function and purpose as a forum for village wealth in the form of money or other securities. As one of the Customary Village Owned Enterprises (BUMDA) directed at efforts to improve the standard of living of the village manners and support the development of the Customary Village. (4). Encourage development and maintain the economic resilience of the indigeneous Village society through targeted savings and effective capital distribution). (5). Model of LPD is the Indigeneous helping the small entrepreneurship in order to increasing the economic development so that the welfare of the people in bali increasing. (6). Creating equity and business opportunities for villagers and rural labor. (7). Increasing purchasing power, expediting payment and money flow in villages, and preserving Hindu culture, customs and religion. The conclusion is that the LPD still exists and the LPD is able to improve the economy of the Balinese community in general and improve the national economy in particular.
Keywords: Existence; Model; LPD Function; Economy; Society.

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