Analysis on Non-Performing Loans in the Lembaga Perkreditan Desa as an Institution that Provides Credit to Villages Using the Perpetual System (Case Study on Gianyar Regency, Bali Province, Indonesia)

Almost all desa adat which was in the Province of Bali has the Lembaga Perkreditan Desa (LPD ) to support the economy of krama desa adat, especially through the channeling of credit without collateral. To maintain the stability of the LPD, observation of the granting of credit by the LPD needs to be done, one of them by analysing the Non Perfoming Loan (NPL). Bank Indonesia sets 5% as maximum value of NPL. Gianyar Regency is one of regencies in the Province of Bali with the most number of LPD, but on the other side the value NPL LPD in the Gianyar Regency reach 11,03%. Research results with the techniques of SEM showed that the internal condition of the LPD, the condition of a prospective debtor LPD, LPD external conditions, and significant effects against the granting of the credit. Similarly, granting credit effect significantly to NPL LPD. Keywords: Lembaga Perkreditan Desa (LPD), the granting of credits, Non Performing Loan (NPL