A digital boost for farmers in Indonesia’s West Java is delivering real-world results, with thousands of dairy producers now seeing bigger incomes and easier access to loans, according to a recent update. Thanks to a new business app and targeted support, members of the South Bandung Farming Cooperative (KPBS) have reported a 38 percent jump in successful loan applications and a 43 percent increase in sales in just two years.
“Access to finance makes all the difference,” said KPBS head Aun Gunawan. “Easier loans mean more cattle and better earnings for our farmers. That’s what real financial inclusion looks like.”
Founded in 1969, KPBS is one of Indonesia’s largest cooperatives, with 5,000 members and a dairy plant producing 70,000 tons of milk a day. Besides processing yoghurt and cheese, the co-op also runs its own vet service, a rural bank, and a small hospital. A new business app—developed with support from the International Labour Organization (ILO), the Indonesian Financial Services Authority, and Switzerland—lets farmers track their cash flow, check vet records, and even apply for credit from their phones.
“Farmers can’t always take half a day off to stand in line at the bank,” explained Encih Mintarsih, a local dairy farmer. “Now, applying for a loan is fast and fits into our daily routine.”
The app keeps animal health, vaccination, and sales data at the fingertips of both farmers and lender. It’s now easier for the cooperative’s own bank to check information and approve loans. Members are making the most of new credit—for buying livestock, upgrading barns, and improving productivity.
Wider access to digital finance tools is also supporting Indonesia’s push to produce more food locally and rely less on imports. Today, about 80 percent of dairy products are brought in from abroad. Programs like this, noted Gita Sabharwal, UN Resident Coordinator in Indonesia, “help local producers compete, boost rural economies, and back national goals for food self-sufficiency and sustainable growth.”
ILO Country Director Simrin Singh added that what started as a strong, well-run cooperative has thrived with better data and easier finance. “It’s about more than convenience. Modern tools are shifting the odds for small farmers.” As Indonesia strives to become a high-income country, partners hope this model will reach more rural communities—giving people the tools to thrive in a digital, competitive world.
