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Blockchain contract awarded to PLMP Fintech to help improve Indonesia's logistics sector
Project will begin with blockchain being used for bidding on agricultural products and hopes to be applied more widely to solve inefficiencies
Singaporean blockchain company PLMP Fintech has signed a Memorandum of Understanding (MOU) this afternoon with the Agency for Free Trade Zone and Free Port of Batam and Indonesian firm Central Distribusi Batam for the development of a project in partnership with the Ministry of Trade that aims at reshaping the whole country's logistics sector starting from the biggest island of the Riau Province.
The pilot phase will see the implementation in Batam of PLMP Fintech's Creatanium blockchain protocol to standardise 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", says Clayton Ong, the tech firm's appointed Country Manager that will oversee operations as they are gradually extended to the whole of Indonesia.
Indonesia's logistics sector has a significant impact on the country's GDP with costs that can be more than twice those of its neighbouring countries with imbalances also at national levels. It is hoped that blockchain will highlight where inefficiencies in the transportation and delivery of goods within certain territories lead to higher prices for basic commodities like rice or sugar.
"Our solutions will allow for round-the-clock updates on the exact location of moving goods to prevent delays and optimise the whole process", explains PLMP Fintech's Co-Founder Kym Kee during her presentation.