Village Organization of Credit System of Padang Tegal Village

Village Organization of Credit System
of Padang Tegal Village

DESA PAKRAMAN PADANGTEGAL

Background
Long time ago before Village Organization of Credit System or in Indonesian, it is said Lembaga Perkreditan Desa/LPD is established in Bali, mostly in all villages in Bali, grow and develop small group or in Balinese it is called sekaa , which engage in saving and loan. Sekaa use Balinese systems and Hinduism philosophies that organize traditionally with believe and understanding as its belief, (in Balinese this belief is said in our local genius with, paras paros sarpanaya, segilik seguluk, selunglung sebayantaka). It is appropriate with saving Balinese ancestors tradition philosophy. It is famous with named Ajeg Bali.

Because of this situation, Bali Government program in Public Policy to save and develop sekaa-sekaa until Traditional Village Organization that nowadays called Desa Pakraman is published, to be formal organization that subsidy and help the developing of Village communities itself.

In former governor of Bali, Prof. Dr. Ida Bagus Mantra (deceased) era, he with his staffs came and studied to Sumatra. In Sumatra, there is a finance organization who is owner by traditional village that develop very good named Lumbung Pitik Nagari . After few months, He attended seminar about LPD in Semarang and from the result of that seminar, Mr. Mantra established LPD in Bali with Governor decree number 972 date on 1st of November 1984.

For the first time in 1985, in every regencies in Bali province established one unit of LPD as traditional village saving and loan organization with the first money was two millions rupiahs (Rp 2.000.000).

In future development, LPD in Bali already showed its role in motivating community economic developing from good plan of modal channelization effectiveness. So because of this result, the LPD and its rules were legitimated by province law, number 2 on 1988.

He believed LPD would develop well because economy aspects of villagges in Bali are supported by sekaa. There are many sekaa e.g sekaa of harvest rice, sekaa of planting, sekaa of arts etc. All the sekaas would save money and in certain time it will disburse for religion and culture important. With established the LPD, it is hoped the economy wheel and money in villages go well so it why head of village also promoted in first era of LPD.

On 1987, Padang Tegal Village in Ubud sub district and Bona Village in Blahbatuh sub district were given confidence invested in established and managed LPD in Gianyar regency with 16 villages all around Bali. When managed its LPD, all villages have their own difficulties but they are keeping move foward as their motto ngulati kerahajengan semeton sami and it means LPD works for our prosperous itself.


The Establishing understanding of the Padang Tegal Village LPD
Enthusiasm of idea from former Governor of Bali, Prof. Dr. Ida Bagus Mantra (deceased) to make an organization to support of village economy and brotherhood with the values of religion and culture (Governor decree number 972 on 1984), I Made Bawa as the head of Padang Tegal Village firstly chose I Wayan Artana and Ni Nyoman Sulasih to train in Denpasar about this organization. Next on 23rd of February 1987, Padang Tegal LPD officially opened with degree number 53 on 1987. With only Rp 2.000.000 as asset, Villagers were not enthusiasm with LPD in that time. Another reasons and conditions that made Villagers were not enthusiasms are:
• Economic enterprise had less believing in LPD.
• Government and Private banks already popular.
• LPD had not enough human resources.
• Etc

A year later, Padang Tegal LPD was given fund by regent of Gianyar Rp 2.500.000, asset total in that time was Rp 4.500.000. As effort of the head of Padang Tegal village in that time, I Made Bawa with his staff I Wayan Atjin Tisna (deceased) and Drs. I Made Subrata (deceased), they started to plan and promote LPD. On Saturday 22nd of February 1997 Padang Tegal LPD reopened again with Padang Tegal Village Traditional Custom Degree (in Balinese called pararem) number 4. Since in that time Padang Tegal villagers started to look, save and loan money there.

On 1996, the head of Padang Tegal chose a new LPD management, I Nyoman Monok (deceased) as LPD leader, Drs. I Nyoman Artana as secretary and I wayan Bawa (deceased) as treasurer. The new management looked more staffs and LPD became more popular because it promoted by the village head and LPD staffs. Then commissioner board promoted a new daily manager Dra. Ni Nyoman Yasi because condition and situation in 1999 said so. With a new daily manager, Padang Tegal LPD started developed with balance Rp. 938.284.651, saving box was Rp. 632.494.713, deposito was Rp. 236.000.000, credit was Rp. 561.318.907 and profit was Rp. 67.002.208.

Until 2001, after retreated of the daily manager, Ni Nyoman Yasi, afterwards the head of Padang Tegal Village chose I Wayan Artana, S.E., as a new daily leader of Padang Tegal LPD. After that, in election for the new period of Padang Tegal LPD management, I Wayan Artana, S.E., was choosing as the leader again with Drs. I Nyoman Artana as the secretaris and I Wayan Bawa (deceased) as the treasurer.

Function and Purpose
LPD works with economy principle that careful principle consider as the most important operation principle with its function and purpose:
• As the bank of village properties (money, commercial paper, etc).
• As one of village organization to help increasing standard live of villagers and developing the village itself.
• As finance house of village.
• Against of illegal finance house, loan shark and moneylender.
• To save culture, custom and religion

Vision To make LPD as non bank finance house, which is strong, believing and capable as village developing organization.

Mission
• To increase positive individual competition, competitiveness, business friendship, innovation and organization quality system in managing villagers money.
• To increase LPD contribution to Village and Government.
• To increase LPD activities on environment for culture and religion affairs

The developing of Padang Tegal LPD.
Padang Tegal LPD is orienting as village economy place that capable to produce profit to village without bend social oriented, give opportunities of looking a job as individual or group as its function and purpose and it must oriented with village social invest because the developing of LPD depend of villagers role and also it is not only for looking a economic oriented.
Padang Tegal LPD Developing Data between 2006 – 2010

	ASSET	CASH	BOX	DEPOSITO	LOAN	INCOME	COST	PROFIT
2006	9.581	3.706	4.874	2.690	6.057	1.466	845	620
2007	14.098	7.150	7.608	4.071	7.143	1.579	928	650
2008	21.360	11.529	11.353	7.096	9.999	2.238	1.495	742
2009	26.332	13.409	13.466	9.210	12.700	3.077	2.025	1.051
2010	37.987	15.367	19.111	13.814	22.098	4.249	2.830	1.418

* amount in billion

Problem
• Human resource quality is still need to guidance and train for better service to customers.
• Still have not brave enough to credit expansion in LPD.
• Bank rate keeps decrease.
• LPD needs new better building.
• Etc

Reparation efforts
• Management, infrastructure and organization reparations.
• Operation reparations (making new money sources and credit reparations).
• Structure reparations.
• Build a new better LPD building.
• Etc.

Future Prospect
LPD is hoped to have better future with doing careful principle and reparation efforts year by year. For future needed, LPD is still in progress to develop and complete in information tehnologies and human resources. Only LPDs with good management and strong financing will have capability to compete in modern globalization era. Finally, LPD needs positive supports from head of village, its staffs and also from the villagers for prosperous they self.

Key words:
- Lembaga Perkreditan Desa (LPD): Village Organization of Credit System.
- Sekaa: small group in Bali.
- Pararem: Balinese Traditional Custom Law.
(Thanks to Agus Bratayadnya for the translation)