ENHANCING LPD PERFORMANCE TO STRENGTHENING THE RURAL ECONOMY

Abstract

LPD (village credit institution) is a non bank financial institution possessed by desa pekraman (customary village) in Bali. LPD performance becomes very essential because LPD support the role of desa pekraman as an economic institution and also a cultural institution. LPD provides social, economic and cultural benefits to its members therefore needs to be fostered and enhanced its performance. This means that improving the performance of LPD is crucial to strengthening the rural economy. In accordance with that increasing rural development is needed to further improve the economy, especially for people in Bali
This research conducted in Badung regency and aimed to determine the effect of Accounting Information System, Organizational Culture and Supervisory Agency Function in improving LPD Performance. Data was collected using purposive sampling technique where 105 LPD accountants were given a questionnaire as sample of respondents. Instrument test conducted to analyze validity and reliability, and then data were analyzed using multiple linear regression analysis technique. This study reveals that the effectiveness of the application of accounting information systems, organizational culture and supervisory agency function have a significant positive effect on the LPDs performance in Badung regency. This indicates that three factors are able to improve LPD performance and should be considered by stakeholders in order to improving LPD performance.