A dairy cooperative in Pengalengan, West Java, is pioneering the first digitally integrated dairy operation with support from the ILO.

PENGALENGAN, West Java, Indonesia (ILO News) - In the evolving landscape of dairy farming, technology is becoming an indispensable tool for efficiency and sustainability. One such innovation reshaping the industry is Enterprise Resource Planning (ERP), benefitting a total of 2,050 active dairy farming members of the South Bandung Livestock Cooperative (KPBS) Pengalengan in Bandung Regency, West Java, Indonesia. For these farmers, operating within the dairy cattle value chain ecosystem, ERP is proving to be a game-changer.

KPBS Pengalengan embarked on its ERP journey in 2017 after challenges with manual record-keeping caused discrepancies in milk reception data. With support from the West Java provincial government, the cooperative initiated the system’s development by identifying and prioritizing key operational needs. In 2018, efforts shifted to refining membership tracking and milk deposit management, followed by advancements in feed distribution logistics in 2019, marking a steady progression toward a more efficient and digitally integrated dairy operation.

The biggest benefit is the real-time data,” he said. “These data represent hope for the future, paving the way for a stronger and more prosperous dairy farming business for our members.

H. Aun Gunawan, Head of KPBS 

In 2023, the system saw further upgrades with the introduction of a loan facility directly connected to rural banks (BPR), made possible through support from the ILO’s 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)—marking another milestone in the cooperative’s ongoing push for innovation.

H. Aun Gunawan, Head of KPBS, emphasized the transformative impact of ERP on the cooperative, noting its role in improving administrative data, enhancing transparency and reinforcing trust among members. “The biggest benefit is the real-time data,” he said. “These data represent hope for the future, paving the way for a stronger and more prosperous dairy farming business for our members.”

A smarter way to manage dairy farming

For dairy farmer Kiki Sobar Baihaqi, ERP has revolutionized the way he manages his farm. With his smartphone always within reach, he efficiently oversees his 22 cows, including 11 lactating ones, by instantly updating milk production data, monitoring health conditions, optimizing feeding schedules and managing bookkeeping—all in real time.

“ERP has made things so much easier. It’s not just about keeping track of cattle health and milk production, I can also quickly check my income and expenses, like transport costs and feed purchases, not just for today but even looking back a few years. It really helps with planning and staying on top of everything,” he said.

As one of the 104 KPBS members who have received loans, he praised the effectiveness of the application. With the new fast-approval loan facility launched last year, farmers can now receive a loan within a day of approval. “I can submit my loan application without having to leave my cattle and dairy production. We can apply for loans easily and quickly, anytime and from anywhere,” he added.

ERP has made things so much easier. It’s not just about keeping track of cattle health and milk production, I can also quickly check my income and expenses, like transport costs and feed purchases, not just for today but even looking back a few years. It really helps with planning and staying on top of everything.

Kiki Sobar Baihaqi, a dairy farmer 

The benefits of ERP extend beyond dairy farmers, proving invaluable for animal health services and care counsellors as well. According to Dida Rosida, an Animal Health Officer of KPBS Pengalengan, the system’s notification feature has streamlined his ability to identify farmers in need of veterinary services and treatment. Beyond tracking ownership details, the platform also provides comprehensive records on cattle health conditions. “By reviewing the application data, I can access key information on births, pregnancies and artificial insemination,” he explained. “It also allows me to monitor health-related factors such as antibiotic treatments, mortality rates, and more, ensuring better care for the livestock.”

Similarly, Fitri Herliana, Head of Care Counsellor and Regional Coordinator of KPBS Pengalengan, stated that the ERP platform has assisted her in maintaining seamless communication with farmers during knowledge-sharing and awareness-raising sessions. It also enables her to efficiently monitor the balance between feed supply and milk production.

Digitalization represents the future of dairy farming, transforming traditional practices into a high-tech, efficient operation that benefits farmers, cattle, and consumers alike.

Djauhari Sitorus, Project Manager of ILO’s Promise II Impact 

“In addition to providing information on matters concerning animal health control, milk production levels, and various logistical issues, I also actively encourage our dairy farmers to maximize their access to financial services that can support the growth and improvement of their businesses," explained Fitri.

Djauhari Sitorus, Project Manager of ILO’s Promise II Impact, commended KPBS Pengalengan for its pioneering role as Indonesia’s first dairy cooperative to integrate EPR into its cattle value chain ecosystem. "We are pleased with KPBS Pengalengan’s dedication to digital transformation," he stated. "Digitalization represents the future of dairy farming, transforming traditional practices into a high-tech, efficient operation that benefits farmers, cattle, and consumers alike."