Indonesia, ILO and Switzerland launch e-Seaweed initiative to advance financial inclusion for seaweed farmers

MAKASSAR, Indonesia (Joint Press Release) – The International Labour Organization (ILO), together with the Government of Indonesia, the Government of South Sulawesi, the Financial Services Authority (OJK), the Government of Switzerland and the Indonesian Merdeka Workers' Cooperative (KOSPERMINDO), officially launched the implementation of the e-Seaweed platform in Makassar, South Sulawesi on 24 September.

Held at the Makassar Industrial Area (KIMA), the launch aims to strengthen the business resilience of smallholder seaweed farmers by using digital technology to improve business records, supply-chain transparency, and access to formal financial services.

e-Seaweed is a digital platform developed and owned by KOSPERMINDO. The platform records farm and warehouse activities, transactions, and farmer data, helping improve traceability, quality control, and supply-chain visibility while supporting business planning and production forecasting.

The initial phase will focus on onboarding approximately 200 seaweed farmers in Takalar District, from KOSPERMINDO's wider membership of around 2,000 farmers. The initiative will also provide capacity building for cooperative management and farming communities, including financial education, entrepreneurship, and green business practices.

“Expanding financial inclusion requires reliable information, stronger business capacity, and an ecosystem that enables financial institutions to serve small enterprises better. Through TPAKD, local governments play an important role in strengthening coordination and collaboration among government, financial institutions, and communities, while digital data can help connect productive communities with responsible financial services,” said Moh. Muchlasin, Head of OJK for South Sulawesi and West Sulawesi.

The launch also marked the symbolic handover of a Warehouse Receipt Financing facility from Bank Sulselbar to KOSPERMINDO, demonstrating how improved business records and value-chain systems can connect to practical financing opportunities.

“Better record-keeping, traceability and the Warehouse Receipt System can help smallholder farmers and cooperatives strengthen the value of their commodities and create greater opportunities to access financing,” said Diah Sandita Arisanti, Head of the Bureau for Development of the Warehouse Receipt System and Commodity Auction Market, Bappebti, Ministry of Trade.

Meanwhile, for KOSPERMINDO, the initiative builds on its existing e-Seaweed platform and expands its use among member farmers in South Sulawesi. “For our cooperative, e-Seaweed helps us strengthen business management, improve transparency and build trust with buyers and financial institutions, creating greater opportunities for our farmers to access finance and grow their businesses,” said Arman Arfah, Head of KOSPERMINDO.

Simrin Singh, ILO Country Director for Indonesia and Timor-Leste, stated that the initiative is supported through the ILO's Promoting Micro and Small Enterprises through Improved Entrepreneurs’ Access to Financial Services – Phase II (Promise II Impact) project. Funded by the Swiss State Secretariat for Economic Affairs (SECO), the project works with government institutions, financial service providers and value-chain actors to promote inclusive and appropriate financial services for micro, small and medium-sized enterprises (MSMEs).

“Through e-Seaweed, we are helping smallholder farmers turn their everyday business activities into credible digital records, strengthening their visibility to financial institutions and opening pathways to finance that can help them grow their businesses and build more resilient livelihoods,” said Simrin.

“e-Seaweed builds on Switzerland’s long-standing cooperation with Indonesia’s seaweed sector by addressing a key remaining challenge: access to finance. By connecting digital records with financial services, this initiative shows how technology and strong partnerships can create practical opportunities for smallholder farmers,” said H.E. Konstantin Obolensky, Ambassador-designate of Switzerland to Indonesia, Timor-Leste and ASEAN.

The high-level launch brought together representatives of the Coordinating Ministry for Economic Affairs, the Ministry of Trade/Bappebti, OJK, the South Sulawesi Provincial Government, the Embassy of Switzerland, Bank Sulselbar, KOSPERMINDO, ILO, as well as representatives of financial institutions and the seaweed sector.

The high-level launch followed field activities in Ujung Baji Village, Takalar District, on 23 September, where partners engaged directly with local seaweed farming communities, showcased farmer data onboarding and the e-Seaweed system, and promoted community-led environmental stewardship.