Tool of empowerment and liberation: Kalimantan Credit Union Movement

Credit Union (Koperasi Kredit) is a realization of the impactful social movement to break the structural marginalization and impoverishment among the Dayak indigenous communities of Kalimantan, Indonesia. First introduced in Indonesia by Pater Karl Albrecht Karim Arbie, SJ, on 4 January 1970 through the Credit Union Counselling Office, the earliest wave of the credit unions is marked by the introduction of credit unions in West Kalimantan in Catholic parishes through learning and experimentation, with active support by Catholic church officials. The expansion became more significant through Pancur Kasih Social Work Foundation, founded in 1981 by a group of young Catholic activists. The foundation focused on the Dayaks’ social, education, and economic condition in West Kalimantan. The foundation realized that what kept Dayaks from failing in pursuing education was a lack of funds or financial difficulties. Thus the foundation developed a community economic empowerment movement by establishing the Pancur Kasih Credit Union in 1987. The development principle of the credit union movement focuses more on the quality growth of the community and members than the institution itself. The credit union has a professional manager and practices financial management like banks and insurance agencies within a cooperative framework. Its aim is not merely solidarity but also capital accumulation—the members must grow to expand the savings and credit base—and it can finance professional staff and operational cost. Three decades of Pancur Kasih have made the credit union the symbol of empowerment of indigenous people in Kalimantan, contributing a role in providing information, motivation, and awareness to village communities in the overall effort to bring about empowerment.