Indonesia's Financial Services Authority (OJK) published an update on a visit by its chair Mahendra Siregar and Swiss Vice President Guy Parmelin to Koperasi Peternakan Bandung Selatan (KPBS) in Pangalengan, Bandung, highlighting the implementation of an enterprise resource planning (ERP) system designed to digitise the dairy-cattle ecosystem and support access to finance for smallholder farmers. The ERP platform connects small-scale farmers, the milk cooperative and industry, with the stated aim of making the distribution chain and business processes more effective and efficient. The initiative is presented as an outcome of OJK’s cooperation with the International Labour Organization (ILO) under the Promise II Impact Project, with support from Switzerland through the State Secretariat for Economic Affairs (SECO). OJK’s digital finance supervisor Hasan Fawzi linked the programme to expanding financial access for underbanked and unbankable farmers, while Parmelin said the platform can help farmers obtain financing and improve production. KPBS reports more than 4,500 farmers, a population of 15,553 dairy cows, and average milk production of around 80 tonnes per day. OJK and the ILO are also developing a similar dairy ecosystem digitalisation programme in Malang, East Java, integrating ERP with Alternative Credit Rating Providers (PKA) and Financial Services Aggregation Providers (PAJK) to broaden farmers’ access to finance.

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