Proceedings of the 3rd International Conference on Law, Economics & good Governance (ICLAW 2025)

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Strengthening Legal Oversight to Prevent Financial Mismanagement in Bali’s Village Credit Institutions

Authors
Arin Pratiwi Quarta1, *, Yudho Taruno Muryanto1, Riska Andi Fitriono1
1Faculty of Law, Universitas Sebelas Maret, Surakarta, Indonesia
*Corresponding author. Email: arinquarta@student.uns.ac.id
Corresponding Author
Arin Pratiwi Quarta
Available Online 29 December 2025.
DOI
10.2991/978-2-38476-519-5_4How to use a DOI?
Keywords
Financial Management; Surveillance; Village Credit Institutions
Abstract

Fraudulent loans are on the rise at Bali’s Village Credit Institutions (LPDs), indicating that these community-based financial institutions lack robust legal and financial oversight. This research aims to enhance the prevention of such abuse. It proposes restructuring the legal framework overseeing LPD’s financial management. The research uses socio-legal techniques and integrates empirical analysis of legal procedures at Bali’s Village Credit Institutions. The findings show that the current legal framework and regulatory protocols are fundamentally inadequate. These weaknesses complicate oversight and regulation. As a result, financial misreporting and fraudulent credit practices can spread more easily. The suggested revisions to the regulations emphasize legal clarity and responsiveness. A more detailed, transparent, and adaptable law is needed. This law should address the challenges faced by LPDs as they evolve and adapt. To strengthen accountability and reduce the risk of fraudulent loans, the new regulatory framework should include advanced information technology systems. It should also enforce clear financial reporting standards and give the supervisory body more authority and resources for comprehensive and ongoing oversight.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd International Conference on Law, Economics & good Governance (ICLAW 2025)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
29 December 2025
ISBN
978-2-38476-519-5
ISSN
2352-5398
DOI
10.2991/978-2-38476-519-5_4How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Arin Pratiwi Quarta
AU  - Yudho Taruno Muryanto
AU  - Riska Andi Fitriono
PY  - 2025
DA  - 2025/12/29
TI  - Strengthening Legal Oversight to Prevent Financial Mismanagement in Bali’s Village Credit Institutions
BT  - Proceedings of the 3rd International Conference on Law, Economics & good Governance (ICLAW 2025)
PB  - Atlantis Press
SP  - 32
EP  - 41
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-519-5_4
DO  - 10.2991/978-2-38476-519-5_4
ID  - Quarta2025
ER  -