Contemporary Perspectives on Financial Governance and Performance in Indonesia's Diverse Institutions

In today’s dynamic and increasingly complex financial landscape, Good Corporate Governance (GCG) has become a fundamental pillar for sustaining trust, performance, and accountability across all levels of financial institutions. While often associated with large corporations and commercial banks, the principles of GCG are equally vital for local financial institutions, particularly those embedded within traditional community structures.

In Bali, Indonesia, Village Credit Institutions (Lembaga Perkreditan Desa or LPDs) have played a crucial role in driving local economic development, offering accessible financial services that align with the cultural values of traditional Balinese villages. Despite their informal and community-based origins, LPDs are expected to operate with a high degree of professionalism, transparency, and efficiency.

This book presents a comprehensive empirical study examining the influence of GCG principles—transparency, accountability, responsibility, independence, and fairness— on the performance of LPDs in Denpasar City. Utilizing robuststatistical methods and real-world data, this study seeks to uncover which governance factors truly contribute to organizational performance and sustainability. By bridging theory and practice, this book offers valuable insights for researchers, policymakers, and local financial practitioners seeking to strengthen governance frameworks and enhance the effectiveness of grassroots financial institutions. It is our hope that this work contributes meaningfully to the discourse on governance in community-based financial systems