The cornerstone of this digital transformation is the introduction of a comprehensive Enterprise Resource Planning (ERP) platform. This system integrates crucial aspects of cooperative operations into a single, transparent digital hub, covering everything from milk collection and logistics to payments and animal health. OJK Chief Executive Hasan Fawzi emphasized that digitalization is about “opportunity and fairness,” stating that this system helps the traditionally underbanked and unbankable smallholders gain essential access to formal financial services by creating clear financial visibility.

Crucially, the ERP system acts as a digital bridge linking dairy cooperatives and farmers directly to Alternative Credit Scoring Providers (PKA) and Financial Services Aggregator Operators (PAJK). This flow of verifiable digital records, as opposed to informal transactions, allows financial institutions to accurately assess the creditworthiness of small-scale farmers, thus unlocking much-needed rural financing. The goal is to build trust and bridge the divide between the informal agricultural sector and the formal financial economy, enabling farmers to invest in better feed and animal care for higher productivity.

The current initiative is a strategic scale-up following the proven success of an ILO pilot program in Pangalengan, West Java. That initial pilot demonstrated significant improvements in milk productivity, animal health management, and, importantly, enhanced financial access for participants. The ILO’s research confirms that these digital systems strengthen cooperative transparency and build greater resilience among smallholders, enabling them to better cope with volatility in prices, disease outbreaks, and supply chain disruptions.