Kopdit Handayani Bajawa was born from an idea formed at a meeting of civil servants and teachers from the Ngada District, held on 30 August 1986. Because of low wages they were unable to meet the expenses of child education, health and housing costs and had become victims of money lenders charging high interest rates.

This meeting triggered the idea of solidarity and a Study Savings Group was formed. Over time, the seeds of an idea grew and bore fruit and in 1990 it changed its status to a Credit Union, Kelompok Studi Tambungan (KST) Handayani. Membership was 69 with a start-up capital of Rp.2.361.500.

The initial aim of forming Kopdit Handayani was to finance the education of their children but it has led to an increase in general household prosperity. Handayani's motto, From Behind Encouraging People to Grow, is aimed at helping to increase their prosperity and overcome the difficulties of coping with education, health and housing costs.

The Credit Union very much identified with the poor. Many of them, especially mothers, had no access to finance companies to help pay for the necessities of life. This left them particularly vulnerable when it came to obtaining medicines. Many had to resort to unqualified practioners.

In November 2005 this reality inspired the official members and members of the co-op to widen its auspices to the poorer people making loans to develop small-scale trade or to help to increase the productivity of existing businesses. In order to join it was obligatory to save Rp.1.000 a day with the head man of the group and at the end of the week a representative came from Kopdit Handayani to collect the money and enter it into a savings book. Initially it was very hard to save because of the difficulty of finding enough to eat every day but in time this was overcome. This programme also helps its members to plan for the future rather than living day to day.

The Credit Union began product diversification by introducing different kinds of savings. Sibuhar (current account), Sisuka (deposit account), Sibudi (long term deposit), and Simapan (future investment savings). At 30 November 2007 membership stood at 1,253 from an initial membership of only 400.

Kopdit Handayani holds an AGM in order to justify their management to the members, and as official members of BK3D Ende Ngada follow continuing education and training.

To date, Kopdit Handayani has 1600 members with assets totalling 3 M, the result of the hard work of members, official members, and the supervisor of Credit Union Handayani.