Diah Gayatri Sudibya in Community Service Activities are carried out in customary institutions that organize the economic dynamics of indigenous communities in Bali, known as the Village Credit Institution (LPD). This report takes the title of PKM, namely "Strengthening the Village Credit Institution (LPD) of Padangluih Traditional Village, Badung Regency". Padang Luwih Traditional Village which has an LPD is located on Jalan Raya Padang Luwih No. 114 in Badung Regency, which is a Communal Financial Institution owned by the traditional village which was established in 1987 and began operations in 1988, functioning to improve the welfare of the Village Community and develop the traditional rural economy in general. The social system that maintains the stability of Bali is the element of social grouping known as the Village community.
In Bali there are 2 types of Villages, which coexist and live side by side in harmony and harmony, namely the Dinas (Administrative) Village and the Traditional Village. These two villages are in line in carrying out their respective functions and roles in the life of the traditional community in Bali. The two villages referred to above, on the one hand, are the Service Village which carries out the role and function of organizing government at the Village level, and the Traditional Village carries out traditional government in preserving customs and culture in the traditional community.
The existence of the Village Credit Institution (LPD) plays a very important role in participating in preserving customs and culture in the Traditional Village. Likewise in Padang Luwih Village, where customs and culture go hand in hand. Where LPD is a financial institution owned by the Traditional Village which plays a role in assisting traditional and cultural activities in the local Traditional Village. LPD in Bali in general and in Padang Luwih Village in particular which is based on the Traditional Village operates to drive the rural economy in the form of people's credit, but also has a mission to preserve customs and traditions and maintain the stability of Balinese culture which is inspired by Hindu teachings based on the Tri Hikta Karana philosophy. Until now, the problem faced by partners is the delay in loan payments (credit) by indigenous people as borrowers, especially in the current Covid-19 pandemic situation.
Many people whose businesses are not running well so that their income is reduced to make their credit payments at the LPD. In this case, the LPD belongs to the Traditional Village, where to resolve the problem of bad credit, the resolution is submitted through Panureksa, which is basically the Perarem regarding LPD, where Pemucuk provides relaxation to Krama Adat whose credit payments are in arrears. The relaxation in question can be resolved with a family, that in the Traditional Village, social groups live side by side in harmony and carry out life in harmony and harmony, with a spirit of tolerance and togetherness as citizens of the Traditional Village.
In strengthening the LPD in the Traditional Village of Padang Luwih, in addition to being based on customary rules, namely Perarem, which is a customary rule of the Balinese people which is dynamic in accordance with the development of the times and is binding. In addition to the Regulation on LPD in terms of strengthening the LPD of Padang Luwih Traditional Village, it must also refer to the organizational standards of human resource management of the Village Credit Institution (LPD) of Padang Luwih Traditional Village as a guideline in regulating Human Resources (HR) regarding the main tasks, authorities, responsibilities and rights of all elements involved in the organizational structure of the LPD of Padang Luwih Traditional Village.
In general, the meaning of strengthening LPD where in the decision of the Governor of Bali No. 972 of 1984 as the basis for the first regulation on the existence of LPD, the meaning can be referred to in the provisions of Article 1 letter e which formulates that LPD is a Village Credit Institution throughout Bali. The purpose of its establishment as stated in Article 3, namely as follows: 1. Eradicating ijon, illegal pawning, and others that are equated with that. 2. Increasing purchasing power in the Village community 3. Facilitating payment and exchange traffic in the Village. Because LPD is formed and managed entirely by the Traditional Village, LPD only serves financial transactions such as savings and loans, financing, and other forms of financial services within the Traditional Village area, by and only for improving the economic welfare of the residents of the Traditional Village. This is as referred to in Provincial Regulation No. 8 of 2002 concerning LPD.
