Leveraging Digital Innovation in Indonesia's Dairy Sector

Indonesia 10.10.2025

Sourse: dairynews.today

The International Labour Organization’s (ILO) initiative, Promoting SME Enterprises through Improved Entrepreneurs’ Access to Financial Services (Promise II Impact), backed by the Swiss State Secretariat for Economic Affairs (SECO), is poised to digitally revolutionize and foster financial inclusion in Indonesia’s dairy sector. This aligns seamlessly with the Indonesian government’s agenda to boost national milk production amidst surging domestic demand.

Leveraging Digital Innovation in Indonesia's Dairy Sector

The project collaborates intimately with the South Bandung Livestock Cooperative (KPBS) in Pangalengan, Bandung Regency, West Java. Focusing on strengthening the upstream segment of Indonesia’s dairy value chain before milk enters distribution, the initiative enhances KPBS’s Enterprise Resource Planning (ERP) system. By integrating animal health, feed logistics, and member management modules, it enables enhanced efficiency and transparency in operations, offering farmers access to digital tools and services for improved productivity and financial access.

Among the project’s pioneering solutions is a digital loan feature, developed alongside BPR Bandung Kidul, allowing farmers to apply for and receive loans directly via a mobile app, thus eliminating the necessity for physical bank visits. This digital interface also provides real-time data on feed usage, milk yields, and livestock treatment, significantly augmenting herd management and quality control.

Envisioning forward, KPBS plans to leverage machine learning for data analysis, promoting evidence-based decisions that enhance productivity and sustainability. The dairy value chain commences with production by member farmers, advancing through stages of collection, processing, storage, and distribution. This vital early-stage intervention by the project establishes a robust groundwork for efficiency throughout the chain.

The overarching impact permeates across stakeholders:

Farmers experience expedited financial access and enhanced livestock management.
KPBS benefits from fortified digital systems, heightened transparency, and superior member services.
The dairy industry ensures a dependable, high-quality milk supply.

By synergizing digital solutions with cooperative and financial structures, the ILO and SECO are orchestrating a resilient, inclusive, and sustainable dairy ecosystem, fostering well-being and success for farmers, cooperatives, and the dairy industry at large.