Pekerti was created as a self-reliant, non-political and non-sectarian organisation, in response to the concern that Indonesia’s industrial development in the 1970s had failed the country’s rural population. The industrialization of the Indonesian agricultural sector had resulted in rapid urbanisation and limited working opportunities for farmers. The development of modern industry had seen many unskilled farmers move to cities in search of greater financial opportunities. Small-scale producers could no longer compete with large companies, which used advertising to dominate markets. As a result, many small businesses and Indonesian farmers were forced into bankruptcy and many rural producers joined the growing mass of factory workers.

A grass roots movement with a back to basics ideal was developed. It started with an idea to establish a foundation concerned with community development. This foundation would be focused on re-establishing people’s awareness and pride in natural resources and cultural heritage, and creating power and inspiration, which would cultivate trade. After much thought and debate, on August 11 1975, five non-governmental organizations concerned with community development, and with cross religious ties, formed Pekerti Foundation.

Today Pekerti has an understanding of sustainable development that is buoyed by 40 years of working closely with Indonesian people to share skills, encourage self-help and innovation, and increase capacity.