Application of Good Corporate Governance Principles in Lembaga Perkreditan Desa (Concept of Local Financial Institutions in Bali)

The National Committee on Governance is called Komite Nasional Kebijakan Governance (KNKG) is that companies implement good governance practices, namely transparency, accountability, responsibility, independence, fairness. Lembaga Perkreditan Desa (LPD) �s management is rooted in the local wisdom and culture of the Balinese people, namely togetherness, kinship and mutual cooperation. With the separation of management and ownership, agency conflicts can occur. The purpose of this study is to determine the effect of Good Corporate Governance (GCG) principles on LPD performance in Denpasar City. The sample used was 35 LPD. The sample is determined by saturation sampling. The data analysis technique used is multiple linear regression. The results of hypothesis testing are known that transparency, accountability, independence and fairness do not affect the performance of the LPD while the responsibility has a positive effect on the performance of the LPD.