A new digital system used by an Indonesian dairy co-op in Pangalengan is being expanded to three more co-ops in East Java.
The Enterprise Resource Planning (ERP) system was first used by the South Bandung Livestock Cooperative (KPBS) in Pangalengan, West Java, to modernise its dairy operations.
Made possible through a partnership with the International Labour Organization (ILO) Country Office for Indonesia and Timor-Leste and the Swiss State Secretariat for Economic Affairs (SECO), the ILO reported that the ERP system improved operational efficiency and broadened financial access for KPBS’s more than 2,000 active dairy farmers, by streamlining logistics, membership management and animal health monitoring.
KPBS have also introduced an ERP-powered mobile loan approval facility, enabling 429 farmers to secure loans totaling IDR 11.6bn, with approvals processed in just one day.
This work has taken place under Promoting SME Enterprises through Improved Entrepreneurs’ Access to Financial Services Phase 2 (Promise II Impact) project, which seeks to drive digital transformation and promote financial inclusion in Indonesia’s dairy sector.
Last month, vice-president of the Swiss Federal Council, Guy Parmelin, visited KPBS along with a high-level Swiss delegation and Indonesian leaders.
“Switzerland is pleased to accompany Indonesia on its path toward a more sustainable and innovative future,” said Parmelin.
“What I have witnessed in Pangalengan shows how digital solutions, when tailored to local needs, can empower farmers, improve efficiency and open access to finance. This is about true partnership – combining Indonesia’s dynamism with Swiss expertise to drive inclusive growth and support a sustainable economy.”
H. Aun Gunawan, head of KPBS co-op, said: “Digital transformation has empowered our members with new financial skills, improved milk quality and quantity and ultimately enhanced their incomes and livelihoods. This transformation also represents hope for the future, paving the way for a stronger and more prosperous dairy farming business for our members.”
The visit also marked the expansion of the digital dairy programme to three East Java co-operatives, Koperasi Peternakan Sapi Perah (KPSP) Setia Kawan, located in Nongkojajar, Pasuruan Regency, Koperasi Produsen Agro Niaga Jabung Syariah Jawa Timur (KAN Jabung Syariah), based in Malang, and Koperasi Produktif Unit Desa (KPUD) Tani Wilis, located in Tulungagung.
During the visit, Simrin Singh, ILO Country Director for Indonesia and Timor-Leste, said: “The progress we see today, especially the tangible benefits dairy farmers have experienced through digital applications, provides clear evidence that technology can be a powerful driver of business growth and expansion, creating a pathway to decent work for all.”
