Continuous national development effort from one to the next Five Year Development Plans (Pelita) has improved welfare of public at large. Poverty level that in 1970s was between 60 - 70 percent, in 1993-1994 had significantly reduced to around 12 - 13 percent. In 1996 this figure had been down to approximately 11 percent. Nevertheless, the government saw that in the 1990’s the declining figure of the poverty was slowing down and sometimes it was very slow and then was stagnant. Therefore government then took real approaching action by directly empowering the target, the pre prosperous family or people.

Between 1993-1994 the government designed a massive program to assist pre prosperous people’s empowerment in 22.000 villages that regarded as pre prosperous village through Presidential Instruction’s (Inpres) program called Pre prosperous Village Inpres Program and known as IDT Program.
However, since the number of village in Indonesia amounted to 65.000, then it was clear that the designed program would not be able to assist pre prosperous families in another 43.000 villages. In the mean time, the conglomerates that concerned on the slowing down of poverty level had been called to participate together with the government in searching for the best way out. On the other hand, empowering family programs had started in order to develop a small happy and prosperous family. The concerned businessmen requested to the President to participate in assisting the family and villagers in the developed village.

BACKGROUND ON THE ESTABLISHMENT OF DAMANDIRI FOUNDATION
Realizing the reality that government could only provide aid to around 22.000 villages, and recognizing that standard of living of the Indonesian family needed to be immediately improved, the President respected the businessmen and people’s intention as a good opportunity to take further action. He agreed that the Indonesia’s success in minimizing the birth rate had been globally recognized and need to be followed up in order for every family to become a small happy and prosperous family.

Moreover, former Indonesian President, Soeharto, supported and provided opportunity for BKKBN to create program in empowering pre prosperous family by assisting pre prosperous and first prosperous family to eradicate their poverty. Since the government did not have sufficient fund, then the President decided to develop parallel development program on all villages across Indonesia using mutually funding provided with the help of the people. He commanded the program to be immediately developed and aligned with the businessmen who had expressed their concern on pre prosperous people.

According to the President’s advice, coordination with businessmen was immediately established and had a guarantee from the businessmen that they were willing to be partner in assisting to eradicate poverty in villages that were not listed in the existing government program as long as this program politically supported by the President and its legislative body. Based on that commitment, a program was arranged where Family Planning (KB) participants who joined in several groups, especially those who were interested in participating in family’s economic empowerment, asked to learn how to save.

Then a program or savings awareness family movement established aimed to the pre prosperous families to learn how to save. The initial plan was the fund saved would be turned to joint capital that they could take turn to use in. By providing an opportunity to KB participants who had joined in the savings groups, significant amount of fund could have been accumulated to be used among them. However, since these families were generally pre prosperous, by taking the President’s advice, instead the initial capital donated by the businessmen. The Family Savings Awareness Movement then launched by the President on 2nd October 1995 and later became the pre prosperous and first prosperous families’ savings known as Prosperous Family Savings or Takesra.

The starting of Prosperous Family Savings expected to immediate collect sufficient fund to assist families in the pre prosperous villages. Empowerment program was arranged whereas the implementation based on the knowledge and approach of BKKBN to the assisted family. The 1994 data showed details illustration on the family condition across Indonesia during that time as reference in arranging the empowerment program.

Later it was realized that the fund needed for 43.000 villages of less privilege family was enormous and would take a long time to accumulate fund saved by these families. It is also realized that the number of pre prosperous family in the established villages was far higher compared to those in the pre prosperous villages. Based on this reality, an alternative program was arranged in expecting for much bigger donation from the existing businessmen. These businessmen were also realized that they had to immediate offering their assistance to this noble effort. Furthermore, there was suggestion for the businessmen to set aside 2 percent of their profit to accelerate the effort of eradicating poverty. Finally, they contacted the President to establish an entity that could carry on people’s aspiration and donation from the businessmen. As realization of the idea, a Foundation was formed and the President led the foundation as voted by the businessmen.

The foundation was established on 15th January 1996 bears the name of Dana Sejahtera Mandiri Foundation (YDSM or Damandiri). In conjunction with the history of its establishment, the foundation has an objective to assist in empowering family as well as eradicating poverty independently. Next, the businessmen who concerned on the effort to empower this family asked to serve as founder of Damandiri Foundation. They were Mr, Sudwikatmono, Mr. Sudono Salim and Mr. Haryono Suyono. The initial fund of the foundation donated by the founders and later on other businessmen whose business profit was above Rp. 100 million per year voluntarily provide donation to eradicate poverty of the less privilege families outside the pre prosperous villages.

The donation accumulated by Damandiri Foundation was saved at PT. Bank BNI. After the empowerment program to provide the family who had savings to take loan and learn to do business was arranged, then pre prosperous family and first prosperous family that had joined in a group where one of each member had savings was allowed learning to conduct business, either in a group or individually supported by very low interest loan that known as Prosperous Family Business Loan or Kukesra.

TAKUKESRA (1995-2002)
This is an aid program to guide its member, pre prosperous and first prosperous families, that joined in groups of Effort in Increasing the Prosperous Family’s Income (UPPKS). These groups received continuous support from BKKBN. Damandiri Foundation provided direction on supported fund and loan scheme to the group and its member.
The loan scheme aimed as working capital loaned to Pre prosperous and first prosperous families known as Prosperous Family Business Loan (KUKESRA), where its member required saving money in a savings known as Prosperous Family Savings (TAKESRA).

KPKU and PTTG TASKIN (1998-1999)
This loan scheme provided to several groups and well to do family. They needed fund in the amount larger than Rp. 320.000,- per family to develop their business and adopted member from another family who failed to conduct business self-sufficiently to be under their supervision.

Looking at the development occurred in the field, the Foundation regards it was necessary to provide an opportunity to the group and the family to gain access to a bigger loan. It was then a new loan scheme developed where it was expected to be guided by experienced businessmen and the loan would be supported by Damandiri Foundation and fund saved by BUMN at State banks. The new scheme was Business Partner Loan Development scheme (KPKU) that provided bigger amount of loan as working capital. For one reason, the fund from BUMN was not placed to go along with Damandiri Foundation’s fund, however since the program had been socialized then funding for this loan scheme solely financed by Damandiri Foundation with expectation that in the future this program would find another source of fund.

PUNDI, SUDARA and KUKESRA MANDIRI (1999-2003)
In practice the KPTTG Taskin’s scheme had not met the need of the group or the well to do family due to changes in government administration where several departments closed down or no longer had interest in the effort to eradicate poverty. To help the group or the well to do family to maintain their income, Dana Sejahtera Mandiri Foundation, taking advice from Mrs. Megawati Soekarnoputri, former Vice President, continued its effort to empower family but rather in limited area; East Indonesian Region. There was also a request for the Foundation to implement its program and activity independently together with appropriate colleague or business partner. Based on this advice, the new loan scheme known as Self-reliance Business Guide or PUNDI, that contains direction and self-sufficient loan scheme using the market’s interest rate was established.

Dana Sejahtera Mandiri Foundation
Editor Address
Gedung GRANADI lt. 11
Jl. H.R. Rasuna Said Blok X-I Kav. 8-9
Jakarta 12950
Telp. (021) 2524985, 2522745 ext. 1385-1386
Fax. (021) 2524980, 79192203
email : redaksi@damandiri.or.id