Abstract
Bali has two village governance systems: administrative-village and customary-village. Administrative-village is the extension of government’s authority in administrative aspects. Meanwhile, customary-village (pakraman village) denotes traditional institution that has a function to organize krama (residents) based on the awig-awig (customary law). The role of customary-village is fundamental in carrying on the custom and culture of Bali as well as triggering the economical aspect from the society through Village Credit Institution (LPD). This study is intended to describe the existence of social capital over the LPD by employing inductive-qualitative approach. Social capital over the LPD can improve the societies’ harmony that have been established in advance. Furthermore, the social capital bonding, bridging and linking can be used continuously in social life.
Highlights
Social capital reflects bonded relations among people that have similar aim to ease their acts (Coleman, 2008)
Putnam (1995) called social capital is classified to three types that are based on social system, that is social bonding means a strong relationship within the members while, social bridging implies interaction occurs either inside and outside the community and social linking refers to social relations among members or among varioussocial levels
A study conducted by Harrison, Montgomery and Bliss (2016) finds out that social capital considered as the main indicator in any resolutions of community developments
Summary
Social capital reflects bonded relations among people that have similar aim to ease their acts (Coleman, 2008). The presence of social capital and social relationship within society are alike and it can be used by people as an indicator of the better access to join financial institutions by erasing the social barriers existed in society. The existence of social capital as previously described and the social relationships established in the community are important indicators that can be used by society in removing social barriers such as access to entry into wider financial institutions. Based on the description above, this present study intends to define how the presence of social capital in the form of Village Credit Institution (LPD) can be used continually and reach expected benefits of the common goals, especially in accordance with the locality of customery villages
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