Indonesia–Switzerland dairy exchange showcases digital innovation to boost smallholder productivity

PANGALENGAN, West Java, Indonesia (ILO News) — As Indonesia works to increase domestic milk production and strengthen its dairy value chain, a learning exchange facilitated by the International Labour Organization (ILO) is demonstrating how digitalization and strong cooperative systems can help smallholder farmers improve productivity, efficiency and access to finance.

Organized under the Improved Entrepreneurs’ Access to Financial Services Phase 2 (Promise II Impact) project, the two-day activity brought together leading dairy cooperatives, including Koperasi Peternak Sapi Bandung Utara (KPSBU), Koperasi Peternakan Bandung Selatan (KPBS) Pangalengan, Koperasi Agro Niaga (KAN) Jabung, Koperasi Peternakan Sapi Perah (KPSP) Setia Kawan Nongkojajar and Koperasi Unit Desa (KUD) Tani Wilis, for a combination of peer learning and international knowledge exchange.

Peer learning among Indonesian cooperatives

On 29 April, the exchange began with a field visit by dairy cooperatives from East Java to KPBS Pangalengan in West Java. The session focused on knowledge sharing among Indonesian cooperatives, with KPBS showcasing its experience in implementing a digital system based on Enterprise Resource Planning (ERP).

Through this system, farmers, cooperatives, and industry actors are connected within a single digital ecosystem. Participants observed how the platform enables real-time monitoring of milk production and distribution, as well as structured recording of animal health, feed management and farm performance.

The visit highlighted how digitalization is improving cooperative operations, enhancing traceability, strengthening data reliability and enabling the development of farmer profiles that can support access to financial services. It also demonstrated how digital tools are improving communication between field officers, cooperative management, and farmers, contributing to more efficient and responsive service delivery.

“With this visit, we aim to replicate the good practices implemented by KPBS Pangalengan, not only to strengthen our cooperative but also to improve convenience and welfare for our farmers. An integrated digital system will make farm management more efficient, transparent and streamlined, while better record-keeping will help farmers become more prepared to access financial services and capital,” said Feri Suharjo, IT officer at KPSP Setia Kawan.

Knowledge exchange with Swiss farmers

On 30 April, the programme continued with a dedicated knowledge exchange session between Indonesian cooperatives and two young Swiss dairy farmers.

The discussion provided practical insights into Switzerland’s highly productive dairy sector, where milk yields can reach up to three times higher than in Indonesia. Swiss farmers shared experiences on optimizing feed systems, maintaining animal health and welfare, ensuring milk hygiene and quality standards and utilizing digital technologies to support farm management and decision-making.

“In Switzerland, we rely on consistent government support and strong farm management practices to maintain high standards and productivity. Digital tools help us manage our farms more effectively, but it is this combination of support, discipline and good practices that ensures long-term sustainability,” explained Amélie Cornu, dairy farmer from Switzerland.

The session also highlighted how Switzerland’s dairy sector is supported by a strong enabling environment, including clear quality standards, consistent policy support and the adoption of technology at the farm level. These elements contribute to maintaining high productivity, ensuring milk quality, and supporting farmers in making informed, data-driven decisions, offering relevant insights for Indonesia’s efforts to strengthen its dairy value chain.

Addressing sector challenges through collaboration

Indonesia’s dairy sector is largely driven by smallholder farmers, most of whom manage between two and four cows. While they play a vital role in national milk supply, the sector continues to face persistent challenges, including low productivity, inconsistent milk quality, limited access to finance and relatively low adoption of digital tools.

By combining peer learning among domestic cooperatives with targeted international exchange, the activity provided a platform to identify practical and adaptable solutions, particularly in digitalization, farm management, and cooperative strengthening.

Building on a growing partnership

The initiative also builds on the growing Switzerland–Indonesia collaboration in the dairy sector, following the October 2025 visit of Switzerland’s Vice President (now President) to KPBS Pangalengan. The visit highlighted the strong partnership between the ILO Country Office for Indonesia and Timor-Leste and KPBS under the PROMISE II IMPACT project, funded by the Swiss State Secretariat for Economic Affairs (SECO), and marked the expansion of the digital dairy programme to additional cooperatives in East Java.

Through continued collaboration, knowledge exchange, and innovation, ILO and its partners aim to support the transformation of Indonesia’s dairy sector into a more productive, inclusive, and sustainable industry, aligned with national priorities to increase domestic milk production and meet growing demand.