Ministerial visit: Enhancing Indonesia's dairy value-chain through access to finance and digital transformation

Background

South Bandung Dairy Farmers Cooperative (KPBS Pangalengan), one of Indonesia’s largest dairy cooperatives, is a key partner in Switzerland’s efforts to strengthen inclusive and sustainable rural value chains. Located in West Java’s main dairy-producing region, the cooperative represents more than 2,000 dairy farmers, many of them women and youth, and plays a vital role in supporting local livelihoods and economic resilience.

Switzerland’s support is channelled through the PROMISE II IMPACT (Promoting SME Enterprises through Improved Entrepreneurs’ Access to Financial Services, Phase 2, 2022–2025) programme, implemented by the International Labour Organization (ILO). The programme is aligned with Switzerland’s International Cooperation Strategy 2025–2028 and Indonesia’s priorities on financial inclusion, digital transformation, and MSME development.

Key achievements in Pangalengan’s dairy value chain include:

• Digitalisation: Digital ERP systems at KPBS now track milk quality, feed, and animal health, while connecting farmers directly to services and financing.
• Financial inclusion: In partnership with the Financial Services Authority (OJK) and local bank, over 429 dairy farmers have accessed digital loans worth IDR 11.6 billion (≈ CHF 644,000), reducing costs and improving business opportunities.
• Capacity building: More than 300 farmers in West Java have received entrepreneurship and financial literacy training with some receiving follow-up mentoring and assistance.

The project’s success has been made possible through close collaboration with Indonesian partners, particularly the Financial Services Authority (OJK) and the Coordinating Ministry for Economic Affairs (CMEA), whose leadership in advancing financial inclusion, MSME development, and the national digital economy agenda is vital for scaling and replicating innovative models such as the one piloted in Pangalengan across Indonesia. This scaling process has already begun, with the model now being replicated and adapted in another critical dairy value chain in East Java.

Core information of the visit

• Date: Thursday, October 2nd, 2025

• Time: 12.00 – 15.35

• Venue: KPBS Pangalengan Production Unit, Milk Collection Point, Dairy Farm

• Delegation: FCGP delegation

• Swiss Embassy: ZEH, DMM, SECO Team, Swiss Business Hub

• ILO Delegation: Country Director and Promise II Impact Team

• Host: KPBS Pangalengan

• Invitees: Representatives from collaborating ministries and agencies, local government:

  • Mahendra Siregar, Chairman, Indonesia’s Financial Services Authority (OJK)
  • Ali Murtopo Simbolon, Deputy Minister for Commerce and Digital Economy, Coordinating Ministry of Economic Affairs
• Agenda