SI CANTIK LPD: A Supervisory Information System for Village Credit Institutions in Bali

Abstract

This study develops a supervisory information system to strengthen oversight of Village Credit Institutions (LPD) in Bali. Weak monitoring practices during and after pandemic have exposed LPDs to persistent fraud risks and financial reporting failures. Using a mixed-method design, the study combines qualitative case evidence with descriptive quantitative analysis to identify supervisory processes, control requirements, and risk indicators. These inputs are translated into a system and control framework. The resulting system—SI CANTIK LPD (Supervisory Information System Model for LPD)—extends the earlier SIPEDAL model by integrating supervisory workflows across the operating cycle and embedding risk mapping and red flags detection mechanisms. The model was piloted at LPD Padang Luwih, Badung, Bali to support the supervision process and internal control effectiveness. Conceptually, the study links supervisory information systems to moral-hazard conditions arising from concentrated authority and limited monitoring while recognizing religious spiritual values as context-specific governance resources in customary financial institutions. The findings provide a structured approach to integrating general and application controls into a supervisory information system. The pilot nature of the implementation limits generalizability and calls for broader multi-site evaluation.