Digital Transformation in Indonesia'sx Dairy Sector

In Pangalengan, West Java, the South Bandung Livestock Cooperative (KPBS) has successfully integrated an Enterprise Resource Planning (ERP) system, thanks to a collaborative effort with the ILO Country Office for Indonesia and Timor-Leste. This initiative is part of the ILO's Promise II Impact project, funded by the Swiss State Secretariat for Economic Affairs (SECO).

The new ERP system has improved operational efficiency and expanded financial access for KPBS’s 2,054 active dairy farming members, enhancing the entire dairy value chain. It has streamlined logistics, membership management, and animal health monitoring, leading to the introduction of a mobile loan approval facility in March 2024. This has further strengthened the cooperative’s financial infrastructure.

To date, 429 dairy farmers have accessed loans totaling IDR 11.6 billion, thanks to approvals processed within a single day. This quick access to financing has increased productivity and opened up new business opportunities.

Besides financial advancements, over 300 dairy farmers have participated in entrepreneurship and financial literacy training, receiving personalized mentoring and targeted support to improve their business skills.

This success sets a pivotal milestone: the digital dairy initiative's expansion to three more cooperatives in East Java. The program aims to replicate digital solutions to boost operational efficiency, financial inclusion, and sustainability in Indonesia’s dairy sector.