Factors Affecting the Development of Customary Village Credit Institution of Sukawana, Kintamani Sub-District, Bangli District

Village Credit Institution (Indonesian “Lembaga Pengkreditan Desa” and hereinafter referred to VCI) is a financial institution belonging to Desa Pakraman in Bali. Viewed from the economic potential of the majority population as farmers and ranchers and economic conditions are quite good and growing. The study examines the factors that influence the development of VCI of Customary Village of Sukawana Kintamani Sub-district–Bangli District, Indonesia. The results of this study are expected to be able to be used as a consideration in formulating policy strategies related to VCI development in Indigenous Villages. The research method used is informative determination technique that is based on purposive sampling. Data collection was done by applying in-depth interview method and document. The data were analyzed using qualitative data analysis technique. The results show that the effort done by VCI Management with familial approach and visiting the prospective customer from door to door to get the customer and VCI development during last 2 years are significant both from the amount of deposits and loan amount; the structure of VCI organization is still very simple, not yet able to be filled in accordance with the plan; customary villages play a role in ensuring the sustainability of VCI and participate in resolving the problem of bad loans; and the autonomy of VCI management will become its own power to face the competitors, and utilize the economic potential owned by the villagers