Vice President of Switzerland Visits West Java to Promote Digital Transformation in Dairy Sector

In a significant diplomatic engagement, the Vice President of the Swiss Federal Council, H.E. Guy Parmelin, visited the South Bandung Livestock Cooperative (KPBS) in Pangalengan, West Java, as part of his official mission to Indonesia. Vice President Parmelin, accompanied by a high-level Swiss delegation and key Indonesian leaders, highlighted the successful collaboration between the ILO Country Office for Indonesia and KPBS through the Promise II Impact project.

This initiative, funded by the Swiss State Secretariat for Economic Affairs (SECO), focuses on digital transformation and financial inclusion within Indonesia’s dairy sector. Addressing the local and global demand for a sustainable economy, Parmelin expressed Switzerland's commitment to supporting Indonesia’s journey towards innovation and sustainability.

"Switzerland is pleased to accompany Indonesia on its path toward a more sustainable and innovative future. 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," stated Parmelin.

A major innovation showcased was the Enterprise Resource Planning (ERP) system, which has enhanced operational efficiency and opened financial access to over 2,000 dairy farmers. This system facilitates logistics, membership, and health monitoring, and introduced a mobile loan facility enabling faster financial approval and access to resources for enhanced productivity.

As of now, 429 dairy farmers have received loans totaling IDR 11.6 billion, processed within just one day, indicating a significant boost to productivity and business opportunities. Additionally, over 300 farmers have engaged in entrepreneurship and financial literacy training, building capacities for sustainable business development.

The collaboration marks a crucial step as the digital dairy program expands to three additional East Java cooperatives. This move aims to bolster efficiency, inclusivity, and sustainability, building on the success seen at KPBS Pangalengan and underscoring the transformative power of digitalization in the dairy sector, as noted by Simrin Singh, ILO Country Director for Indonesia and Timor-Leste.