Deputy Director General Of ILO Highlights The Role Of Digitization For SMEs In Indonesia

Deputy Director General of ILO Celeste Drake witnessed the process of collecting dairy products at one of the KPBS Canning milk collection sites, West Java, Friday (21/6/2024). (ANTARA)

JAKARTA - Deputy Director General of the International Labor Organization (ILO) Celeste Drake visited the Sinengan Livestock Cooperative (KPBS), West Java, Friday (21/6), to witness the role of digitalization to increase the productivity and competitiveness of SMEs in Indonesia.

During the field visit, Celeste saw how digital innovation could help dairy farmers in West Java expand and develop their business through better access to financial services.

"The benefits obtained by dairy farmers from digital applications that we see today are important evidence of the positive impact of digital technology on increasing and expanding business," Celeste said in a written statement from ILO Indonesia on Saturday.

"This is also good evidence of the need to narrow the gap in access and use of technology, ensuring that no one is left behind in obtaining benefits from digitalization," he added.

The official visit of the Deputy Director General of ILO to KPBS Pengalengan was carried out with Charge d'Affaires of the Swiss Embassy in Indonesia Philippe Strub, Head of the West Java Financial Services Authority (OJK) Imansyah, Director of ILO for Indonesia and Timor -Leste Simrin Singh, and Manager of the Financial Services Project for SME ILO Djauhari Sitorus,

During the visit, the group saw firsthand the activities of KPBS Pengalengan, one of the largest dairy cooperatives in West Java with a total of 2,050 active members of dairy cattle breeders.

After being received by KPBS Chairman H. Aun Gunawan, they toured various KPBS facilities such as milk collection sites, hospitals, processing factories, minimarkets, and interacting with female and male dairy cow breeders of all ages.

The ILO Office for Indonesia and Timor-Leste, through the project of Promoting SME Business through Increasing Entrepreneur Access to Financial Services Phase 2 (Promise II Impact), funded by the Swiss State Secretariat for Economic Affairs (SECO), has established close cooperation with the Canning KPBS in encouraging digital transformation and increasing financial inclusion through Digital Financial Services aimed at improving the KPBS value chain ecosystem, business scale, productivity, business expansion and better financial access.

We really appreciate the support ILO provides that allows our members to benefit more from using digital technology and gain new skills that increase their productivity, knowledge, and financial access. This will certainly improve the quality and quantity of milk, and ultimately increase the income and livelihood of the breeders," said Aun Gunawan.

This support will improve KPBS's Enterprise Resource Planning (ERP) by adding various features that are easy to use in animal logistics, membership and health modules that are beneficial for all KPBS members who are currently in the dairy cow value chain ecosystem.

This fast approval loan facility was just launched in March 2024. To date, 104 members have received loans through this facility.

Loan recipients admit the effectiveness of using the application. The loans they apply for get approval in just one day, so that it is beneficial for their productivity because they no longer have to lose working hours is important to take care of livestock and milk production.

Dairy cow farmers can apply for loans easily and quickly, at any time, and from anywhere.

In addition, the Promise II Impact ILO program has coached 29 local trainers regarding entrepreneurship and financial education through training programs for coaches.

These coaches have coached 340 dairy farmers, 30 percent of whom are women, about how to better manage their income and improve their dairy business.

The Swiss government is committed to supporting the development of SMEs in Indonesia through the opening of access to finance and encouraging digital transformation. The Promise II Impact ILO program has made a significant contribution to Indonesia's financial inclusion agenda and supports SMEs in realizing their growth potential as shown by dairy farmers under the Canning KPBS, "said Philippe Strub of the Swiss Embassy in Indonesia.