The South Bandung Farming Cooperative (KPBS) has seen significant growth in both productive loans and sales volumes over the past two years, thanks to the implementation of a new business app. This increase in financial performance has led to higher incomes for farmers and improved livelihoods overall.
Aun Gunawan, the Head of KPBS, highlighted the positive impact of easier access to financing on the cooperative’s operations. He noted that the rise in loan volumes has allowed farmers to invest in more cattle, ultimately leading to higher income levels. Gunawan emphasized that financial inclusion plays a crucial role in enhancing the well-being of farmers and driving economic growth.
Established in 1969, KPBS boasts 5,000 members and produces an impressive 70,000 tons of milk daily. The cooperative runs its own dairy plant, utilizing 15% of its milk production for yogurt and mozzarella cheese production, while the rest is sold to regional dairy companies. Additionally, KPBS operates a hospital, veterinary service, and a bank to provide comprehensive support to its members and improve their competitiveness in the market.
During a visit by heads of United Nations agencies in Indonesia as part of their annual Leadership Dialogue, Gunawan shared KPBS’s holistic approach to health and financial well-being. He emphasized the importance of maintaining the health of farmers and their cattle, as well as ensuring their financial stability. The International Labour Organization (ILO) has joined forces with KPBS to implement this vision and enhance financial inclusion through digitization.
The ILO, in collaboration with the Indonesian Financial Services Authority (OJK) and the Coordinating Ministry of Economic Affairs, is supporting KPBS in leveraging digital tools to strengthen financial services. By introducing an Enterprise Resource Planning (ERP) system business app funded by the Government of Switzerland, farmers can now monitor their income, expenses, and the cost of fodder provided by the cooperative. This app also enables farmers to access veterinarians 24/7, with quick response times of around 30 minutes to reach farms.
Moreover, the app records veterinary data for individual animals, including vaccination schedules. This data allows milk collection points to separate milk from recently vaccinated cows to prevent any quality issues that could affect the selling price. These practical improvements have not only increased production volumes but also enhanced the overall quality of products, leading to better prices in the market.
The success of KPBS in utilizing digital tools for financial management has attracted attention from various stakeholders, including government agencies and development partners. The cooperative’s ability to adapt to new technologies and improve its operations serves as a model for other agricultural enterprises looking to enhance their financial performance and support their members effectively.
In conclusion, the South Bandung Farming Cooperative has demonstrated the positive impact of financial inclusion and digital innovation on agricultural development. By leveraging digital tools and implementing a holistic approach to health and financial well-being, KPBS has achieved significant growth in loans, sales volumes, and overall income levels. This success story serves as an inspiration for other farming cooperatives and organizations seeking to improve their operations and enhance the livelihoods of their members.
