The Quiet Revolution: How Credit Unions (CU) Redefined Prosperity for the Dayak People
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| The Headquarters of CU Lantang Tipo in Bodok, Sanggau Regency, one of the oldest and largest Credit Unions in Borneo, is over half a century old. Documentation: the author. |
🌍 DAYAK TODAY | PONTIANAK: There's a saying in Kalimantan: Credit Unions (CUs) are the banks of the Dayak people. This saying is quite popular and reflects the significant role CUs play in the Dayak community.
CUs are regarded as the "Dayak people's bank" because they have become economic pillars for many communities, especially in rural Borneo.
This phrase may seem paradoxical, as banks and credit unions (CUs) are fundamentally different entities, even though both are financial institutions.
Banks are typically for-profit organizations owned by shareholders, aiming to maximize profits. In contrast, credit unions are not-for-profit cooperatives owned by their members, focusing on serving their members' financial needs.
One is a bank; the other is not. Their foundations differ: CU operates as a cooperative. To put it simply, that’s the metaphor!
Trust, Solidarity, Humility, Ownership, Community
Yet, one thing remains essential: A CU can only thrive in an environment where trust and solidarity flourish.
Read Credit Union (CU) Lembaga sekaligus Literasi Keuangan Orang Dayak
Once again. And again. Three trillion. That’s no trivial number—it’s the staggering asset value! But here’s the thing: to enter the Dayak Bank, you don’t need polished shoes.
Flip-flops will do. As long as you dress modestly and meet the requirements, you’re welcome. No unnecessary formalities. Just service, plain and simple. That’s the Dayak Bank.
In the members’ service area (not “customers,” as in a traditional bank), interactions happen differently. It’s not just clients and officials; it’s co-owners engaging with one another. We, the members, are stakeholders.
As we waited in line, we found ourselves surrounded by humble villagers. Yet, in their hands—inside black plastic bags—were wads of cash. They were here to save. Among them was a childhood friend of mine from elementary school. He owns a truck. He just harvested seven tons of palm oil. And where does he deposit his earnings? At the CU. Incredible!
Humility. The term goes deeper than simplicity. Look it up in the online Indonesian dictionary. I’ve used this word for decades. It’s a powerful one.
It encapsulates meaning in a concise form. In Javanese, they say sak madyo—just enough. Nothing excessive. That is the essence of Dayak life!
Capitalism Outward, Socialism Inward
The rise of community-driven economic conglomerates in Dayak lands is undeniable. This is fact! As Munaldus, M.A.—one of the founders of CU Keling Kumang and a key figure in West Kalimantan’s Credit Union movement—once told me: “Poverty is like bleeding. It must be stopped.”
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| CU: Capitalism Outward, Socialism Inward. Home service for members— a proactive approach. Documentation: the author. |
Munaldus is determined: CU breaks the cycle of structural poverty.
My longtime friend and intellectual sparring partner, Liu Ban Fo, holds a firm vision—villages will encircle cities with their economic system. And the widespread network of Keling Kumang Group (KKG) retail stores has already proven this.
In 2016, I conducted research. From that, I wrote a 275-page book titled 40 Years of CU Lantang Tipo, chronicling the history of how a cooperative can only grow in a community built on trust and solidarity.
After all, doesn’t “credit” originate from the Latin credere, meaning “to believe”? The singular form credo means “I believe.” The third-person singular credit means “he/she/it believes” (if a subject is present) or simply “believes” on its own.
Thus, the foundation of a Credit Union is mutual trust. Without it, a cooperative crumbles. This is the main reason why many cooperatives collapse—unless, of course, they fold themselves.
Recognizing my previous work, in 2018, CU Keling Kumang—on its 25th anniversary—commissioned me to do the same. I conducted research and authored 25 Years of CU Keling Kumang: The Kingdom of Keling Kumang’s Fruits.
To outsiders, the first time they hear about Credit Unions (CUs), they struggle to grasp the concept. I tell them: “It’s the Dayak people’s bank.” And they immediately nod in understanding.
But it’s not just any bank. Its philosophy is simple: I help you; you help me. We support each other!
The Indonesian Ministry of Cooperatives releases an annual list of the 100 Largest Cooperatives in Indonesia. The success of cooperatives in Indonesia is clear. Many CUs are prominently featured, demonstrating that Article 33 of the 1945 Constitution is alive and well in the Dayak community.
A Remarkable Achievement
Two words best describe the spirit and vitality of the Dayak people. Luar biasa! Extraordinary!
Read The Dayak Bank: The Credit Union (CU) That Drives Financial Literacy for the Dayak People
This cooperative movement thrives, especially in West Kalimantan. While other provinces have seen progress, none rival Kalbar’s CU dominance. Among the top institutions here are Lantang Tipo, Pancur Kasih, Keling Kumang, Khatulistiwa Bhakti, and Semarong, among many others.
If you want proof, just browse 100 Largest Cooperatives in Indonesia. The numbers speak for themselves—CUs are firmly entrenched. Dayak people have truly realized the essence of Article 33 of the Constitution.
Lantang Tipo: More Than Just a Name
Names can be dismissed. But for members of CU Lantang Tipo, that name is unforgettable. It carries values. It embodies the spirit of its founders. Every member is expected to live by the tipo spirit in their daily lives.
One day, in Pusat Damai, five parish representatives returned from a CU seminar in Sanggau. They felt the need to share what they had learned with a wider audience.
I have studied three CUs. The conclusion is clear: a cooperative can only grow in a community rooted in trust and solidarity.
A broader meeting was organized. The five parish representatives, along with all teachers under the Yayasan Perum Foundation, parish staff, and community leaders—about 30 people in total—gathered. The theme: “Basic CU Training.”
This training took place in late January 1976, lasting about five days. It was held in an old church building.
On the final day, it was agreed—a CU would be officially established. But there was one issue: it still had no name.
Each participant, now well-versed in CU principles, was asked to suggest a name for the “newborn.”
Every individual had equal opportunity. They could draw inspiration from animals, sacred sites, respected figures, mountains, or rivers.
One by one, participants presented their suggestions. The room listened intently. The most compelling proposal, the one that best captured the CU spirit, would be chosen collectively.
The name Lantang Tipo came from a man named Acang. It was accepted unanimously.
Acang took his turn and presented his reasoning: “Whenever I go to the forest or fields, I often see lantang tipo.”
“Alright,” he continued, “I’ve decided to propose it as our name.”
Philosophy and Spirit
Acang explained the characteristics and vitality of this plant. Lantang tipo is a wild ginger-like plant that thrives in the forest. It has a high survival instinct and grows in clusters. Even when trampled, it persists. It symbolizes resilience and vitality. Where tipo grows, the soil is rich and fertile. Even weeds struggle to compete. Its Latin name: Zingiberaceae. Tipo means “high-spirited and fertile soil.”
“Lantang means seed, while tipo represents an evergreen forest plant, forever thriving,” Acang elaborated.
According to Acang, if you cut tipo, within five minutes, it begins sprouting again. Remarkable!
In their language (Hibutn), they say, pasap nyulor—once cut, it immediately regrows.
And thus, CU Lantang Tipo was born—a name, a legacy, and a promise of resilience.
The Rise of CU Lantang Tipo: From Humble Beginnings to Financial Powerhouse
It began with a conversation—an earnest exchange of ideas among the leadership. Their conclusion was clear: they needed an office of their own. To fund the project, they drafted a proposal and sent it overseas—to Germany. The funding they secured was earmarked for the construction of the first standalone office: a sturdy, two-story wooden structure with cement walls, measuring 11 by 11 meters.
As membership grew, so did the need for space. The board applied for another round of funding—this time from Switzerland. Their request was granted, allowing them to extend the building further back. But growth was relentless.
Over time, membership surged, and financial independence became a reality. The cooperative could now stand on its own. A new office was constructed on the lower ground, and the original building was torn down.
The expansion of CU Lantang Tipo signaled more than just physical growth—it was a sign of trust. By the 1980s, the region of Pusat Damai was undergoing a transformation. Palm oil companies were moving in, plantations springing up across the landscape.
The cooperative’s core philosophy was as simple as it was profound: I help you, you help me. Together, we lift each other up.
As landowners sold their plots to corporations, some reinvested in their own palm oil plantations. They needed capital—for seedlings, fertilizers, herbicides, and maintenance. The credit union flourished in an environment built on trust and mutual support. Alongside palm oil, high-yield rubber plantations also began to thrive.
The cooperative became a crucial financial pillar. Those who had never been members before started joining. They saved money. They learned financial discipline. Over time, their relatives and friends noticed: members of CU Lantang Tipo were improving their standard of living. More people followed, swelling the ranks of the cooperative.
Membership expanded beyond Pusat Damai and Parindu, crossing parish boundaries.
By CU Lantang Tipo’s anniversary in 2007, the organization had become an institution. On that day, Ewald—a man of few words—stood before the gathering. He uttered just two, but they resonated deeply: “Lantang Tipo, Pantang Tipu.” (Lantang Tipo, Never Deceives.)
In 2014, the Indonesian Ministry of Cooperatives and SMEs recognized CU Lantang Tipo’s achievements. The credit union took home two prestigious awards: Fastest Asset Growth and Strongest Capital Growth. For CEO Tarsisius and the cooperative’s members, it was a moment of collective pride.
By the 2018 fiscal year, CU Lantang Tipo’s assets had soared to Rp 2.96 trillion—the largest among its peer institutions, outpacing credit unions like Pancur Kasih and Keling Kumang. By April 2020, its membership had swelled to 204,049 people, spread across 51 branch offices in 14 districts and cities throughout West Kalimantan.
For an institution founded on trust, solidarity, and self-reliance, the numbers told a story of their own: CU Lantang Tipo had earned its place at the top—not just through size, but through an unwavering commitment to its members.
How Credit Unions Redefined Prosperity for the Dayak People
For the past 50 years, Credit Unions (CUs) have flourished, evolving into the financial backbone of the Dayak people. Introduced by the Catholic Church, CU thrived not through bureaucratic mandates or imposed regulations, but because it resonated with the very essence of Dayak culture—honesty, mutual trust, and a deep-seated sense of compassion.
Unlike government-imposed cooperative models such as the Village Unit Cooperatives (Koperasi Unit Desa - KUDs), which crumbled under the weight of distrust and lack of solidarity, CU took root in fertile ground. It wasn’t a financial system forced upon the people—it was one that grew organically from within, nurtured by a communal spirit that saw wealth not as a zero-sum game but as a shared responsibility.
Fifty years of experience have made one thing abundantly clear: CU can only thrive in communities like the Dayak, where integrity isn’t just an expectation but a way of life. Financial trust here isn’t built on contracts alone but on generations of unwritten bonds, deeply rooted in a culture of mutual respect and shared responsibility. This isn’t merely an economic model—it’s a living testament to the power of community-driven finance, proving that true resilience emerges not from imposed systems but from within the people themselves.
This quiet revolution challenges the long-held belief that top-down solutions are the key to economic stability. Instead, CU has shown that prosperity is best achieved when communities take ownership of their financial future, shaping institutions that reflect their values and lived realities.
In the end, CU didn’t just survive—it redefined what it means to thrive on one’s own terms, setting a precedent for self-sustaining growth driven by trust, solidarity, and a vision of collective well-being.
-- Masri Sareb Putra