The Indonesian government has hired a Singapore-based tech company to set in motion a multi-million blockchain project with the aim of improving the country’s supply chain.
Singaporean blockchain company PLMP Fintech said it has signed a memorandum of understanding with the Agency for Free Trade Zone and Free Port of Batam, a government body that plays a role in land governance and investment in the Special Economic Zone of Batam, and Indonesian firm Central Distribusi Batam to develop a multi-million blockchain project.
The undertaking, carried out in partnership with Indonesia’s Ministry of Trade, aims to reshape the whole country’s logistics sector starting from Batam, the biggest island of Riau Province, PLMP Fintech said in a release May 29.
The pilot phase will see the implementation in Batam of PLMP Fintech’s own Creatanium blockchain protocol to standardize the bidding exercise between buyers and sellers of agricultural commodities.
“Both parties will benefit from a simplified process where offering prices and trading are conducted openly and transparently,” said Clayton Ong, the tech firm’s appointed country manager that will oversee operations as they are gradually extended to the whole of Indonesia.
With one of the world’s largest populations and a challenging territory that encompasses thousands of islands and hectares of jungle, Indonesia can make the best use of a blockchain-based tracking platform to turn its time-consuming supply chain into an efficient machine.
“Our solutions will allow for round-the-clock updates on the exact location of moving goods to prevent delays and optimize the whole process,” explained PLMP Fintech’s co-founder Kym Kee during her presentation.
Indonesia’s logistics sector has a significant impact on the country’s GDP, with costs that can be more than twice those of its neighboring countries and with imbalances also at national levels. Where inefficiencies in the transportation and delivery of goods within certain territories lead to higher prices for basic commodities like rice or sugar, blockchain solutions can bring the transparency and traceability needed to create an even ground, the company added.
Photo: musnahterinjak
