H.E. Guy Parmelin, Vice President of the Swiss Federal Council, visited the South Bandung Livestock Cooperative (KPBS) in Pangalengan, Bandung Regency, West Java, today as part of his official mission to Indonesia. Currently serving as the Federal Councillor for Economic Affairs, Education and Research, Vice President Parmelin is also expected to assume the Presidency of Switzerland in 2026.
Accompanied by a high-level Swiss delegation comprising senior government officials and private sector representatives, the visit was joined by key Indonesian leaders including Mahendra Siregar, Chairman of the Financial Services Authority (OJK); Stella Christie, Deputy Minister of Higher Education, Science and Technology; Ali Murtopo Simbolon, Deputy Minister for Commerce and Digital Economy at the Coordinating Ministry for Economic Affairs; Hasan Fawzi, member of OJK Board of Commissioners also Head of the Executive for Financial Technology Innovation Supervision, Digital Financial Assets, and Crypto Asset Supervision; and Simrin Singh, ILO Country Director for Indonesia and Timor-Leste.
The visit highlighted the successful collaboration between the ILO Country Office for Indonesia and Timor-Leste and KPBS Pangalengan through the Promoting SME Enterprises through Improved Entrepreneurs' Access to Financial Services Phase 2 (Promise II Impact) project, funded by the Swiss State Secretariat for Economic Affairs (SECO). The initiative seeks to drive digital transformation and promote financial inclusion in Indonesia's dairy sector, aligning with the government's priority of boosting national milk production to meet growing domestic demand.
"Switzerland is pleased to accompany Indonesia on its path toward a more sustainable and innovative future. What I have witnessed in Pangalengan shows how digital solutions, when tailored to local needs, can empower farmers, improve efficiency and open access to finance. This is about true partnership - combining Indonesia's dynamism with Swiss expertise to drive inclusive growth and support a sustainable economy," stated Vice President Parmelin.
A key innovation showcased during the visit was the implementation of an Enterprise Resource Planning (ERP) system, which has significantly improved operational efficiency and expanded financial access for over 2,000 KPBS dairy farming members. The ERP system streamlines logistics, membership management and animal health monitoring. It also enabled the launch of a mobile loan approval loan facility in March 2024, further strengthening the cooperative's dairy value chain.
To date, 429 dairy farmers have benefited from this facility, receiving loans worth a total of IDR 11.6 billion (approx. US$690,000) - with approvals processed within just one day. This rapid access to finance has boosted productivity and opened new business opportunities. Complementing these financial tools, more than 300 dairy farmers have participated in entrepreneurship and financial literacy training. Several have also received follow-up mentoring and tailored support to strengthen their business capabilities.
Simrin Singh, ILO Country Director for Indonesia and Timor-Leste, underscored the transformative role of digitalization in boosting SME productivity and competitiveness. "The progress we see today, especially the tangible benefits dairy farmers have experienced through digital applications, provides clear evidence that technology can be a powerful driver of business growth and expansion, creating a pathway to decent work for all," she said.
These comments were echoed by H. Aun Gunawan, Head of KPBS who said, "Digital transformation has empowered our members with new financial skills, improved milk quality and quantity and ultimately enhanced their incomes and livelihoods. This transformation also represents hope for the future, paving the way for a stronger and more prosperous dairy farming business for our members."
During the visit, Vice President Parmelin toured KPBS Pangalengan facilities, including the dairy farm, milk collection point, processing factory and mini-market. He also engaged directly with farmers of different ages and genders, gaining firsthand insights into their experiences, challenges and how digital innovation is strengthening their livelihoods.
The visit highlighted Switzerland-Indonesia collaboration and marked the expansion of the digital dairy programme to three further East Java cooperatives, building on the success of the KPBS Pangalengan pilot to drive efficiency, inclusion and sustainability in Indonesia's dairy sector.
