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Social enterprise is not immune from fraud. As social enterprise is growing, there are some risks of fraud occurrance. Therefore, the purpose of this paper are to discuss types of frauds risks in Indonesian social enterprise and the effective ways to prevent it. This study used case study in one of social enterprise in Indonesia, that is at Panggungharjo, Indonesia. Panggungharjo has Village-owned Enterprise that manage waste management as its social business. The finding of this study indicates that there are three types of fraud occurred in Indonesian social enterprise. These types of fraud could be prevented by engaging community in decision making and monitoring process which are known as participative social governance. This study argue that participative social governence is more effective in fraud prevention rather than external audit and monitoring. The study will be useful for scholars, policy makers and regulators who are interested in Indonesian social enterprise.

Fraud Frevention for Sustainable Social Enterprise Using Participative Social Governance