This study attempted to scrutinize the governance of Community Microfinance Institutions (known as LKMM) which was established by the Department of Cooperative and Micro Enterprise of Jember regency in Patrang Sub-district, namely "Semenggu" LKMM and "Mawar" LKMM. The study involved five principles of organizational governance namely transparency, accountability, accountability, fairness, and independence. The method operative was a qualitative descriptive in nature. The method was applied to describe and interpret objects based on their actual occurrence. The descriptive approach aimed to generate an overview of the management of "Semenggu" LKMM and "Mawar" LKMM. In order to maintain the data validity, key informants were selected by purposive sampling. The sampling focused on involving people who were able to afford accurate, detail, and clear information concerning the governance of LKMM. The research findings have evinced that the principles of transparency, accountability, accountability, fairness, and independence on "Semenggu" LKMM and "Mawar" LKMM have not been fully implemented. The implementation of the five principles of organizational governance in "Semenggu" LKMM and "Mawar" LKMMis still tainted with numerous problems that must be addressed by LKMM administrators to improve the principles of transparency and accountability as a manifestation of good governance.
