Implementation of Sattvam, Sivam, Sundaram Governance in Credit Institutions in Kedonganan Village, Bali

Abstract

Labda Pacingkreman Desa (LPD) is a financial institution belonging to a traditional village that is domiciled only in each traditional village in Bali. Initially established in 1984, LPD aims to help improve the economic capacity of indigenous rural communities independently. LPD has a more complex function in its development than a business institution that still has to make a profit. Still, on the other hand, it must be able to finance cultural activities because it is in direct contact with traditional villages. One interesting phenomenon, LPD continues to experience profit growth, despite having to carry out the dual mission. The purpose of this research is to find out and understand the governance practices of this institution. This study uses an anthropological approach that focuses on the philosophy and methods of managing sattvam, sivam, sundaram in LPD Bali, Bali Province. Data were obtained through interviews, direct observation, and document studies. Interviews were conducted with prajuru (customary village leaders), LPD administrators, and traditional village communities. Research shows that LPDs have and implement holistic business governance practices, synergies between scale (physical/real) and Niskala (non-physical/belief) business governance. Scale business governance with general principles, namely openness, responsibility, accountability, fairness, and independence. At the same time, Niskala governance is the principle of satvam, sivam, sundaram.