Badung audits 21 village credit institutions in 2026

Mangupura, Bali — Badung’s Culture Agency said it completed audits of 21 village credit institutions, or Lembaga Perkreditan Desa (LPDs), across the regency in 2026 and found that their finances and operations were generally sound, according to reports published on Sept. 15, 2026.

The 21 institutions were a sample drawn from 122 LPDs operating in Badung, and the review covered governance, financial transparency, institutional health and daily operations, according to the reports.

Badung Culture Agency chief I Gede Sukadana said the results showed LPD managers were maintaining institutional health, improving governance and serving customary-village communities, while auditors still identified issues that needed follow-up.

Follow-up points

Among the matters flagged for correction were the need to ensure all transactions are recorded in real time and can be properly accounted for, as well as steps to reduce the risk of bad loans and potential operational irregularities, according to the reports.

The audits also looked at risk management and compliance with rules applying in Bali’s customary villages, known as desa adat, the reports said.

The reports did not say that any LPD had been formally sanctioned or that any alleged irregularity had been proven. They framed the findings as recommendations for improvement rather than accusations of misconduct.

LPD scale in Badung

Badung’s 122 LPDs collectively manage about Rp11 trillion and employ 1,331 people, according to the reports. That scale makes oversight of the institutions significant for customary villages and the local economy.

Earlier reporting this year said Badung had been auditing LPDs in stages and targeted around 20 reviews in 2026, before the agency later said it had completed audits of 21 institutions.

In January, Sukadana’s office said the broader audit programme would continue in phases, with all LPDs in Badung expected to be audited by 2027.

Sources

• NusaBali
• Bali Post