The Indonesia Financial Services Authority, together with the International Labour Organization, has launched an enterprise resource planning system and an inclusive finance access program for dairy farmers in East Java. The initiative is designed to address long-standing barriers to formal financing caused by limited business data and information asymmetry, while supporting digitalisation of the dairy farming ecosystem. The ERP system is intended to record cooperatives' production, financial and operational data more systematically and in real time, giving a clearer view of farmers' production capacity, business quality and financial condition. OJK said integration with Alternative Credit Rating services and Financial Services Aggregation Providers is meant to help build more objective and inclusive credit profiles and connect smallholder farmers to formal financial services. The launch marks completion of ERP development integrated with Alternative Credit Rating services at three priority dairy cooperatives in East Java, namely Koperasi Agro Niaga Jabung, Koperasi Peternak Sapi Perah Setia Kawan and KPUD Tani Wilis, covering more than 10,000 cooperative members. As a follow-up, OJK held a focus group discussion with stakeholders to support wider implementation across East Java. The three-cooperative rollout is intended to provide a model that can be replicated in other sectors and regions in Indonesia.
OJK2026-06-12
Indonesia Financial Services Authority and ILO launch ERP system for East Java dairy cooperatives to expand formal financing access
The Indonesia Financial Services Authority and the International Labour Organization launched an ERP-based programme in East Java to improve dairy farmers' access to formal finance. The system captures cooperative data in real time and is linked to Alternative Credit Rating services to support more accurate credit profiling. It has been implemented at three dairy cooperatives covering more than 10,000 members, with OJK seeking broader rollout across the province.