It’s quite a big deal for any company to receive a contract related to transforming an entire sector of a country, but it looks like a blockchain firm based in Singapore has received such a massive contract from the government of Indonesia. PLMP Fintech, a Singapore-based blockchain firm, has just been partnered by the Indonesian government to participate in a transformation of country’s shipping sector. It’s a multi-million dollar partnership, and hopefully one of the biggest partnerships that PLMP might have done till date.
The partnership was announced in a press release published a few hours ago. The press release states that it has been done between PLMP Fintech and Indonesia’s Ministry of Trade. It aims to improve the shipping industry of Indonesia starting from Riau province, and a new Memorandum of Understanding (MoU) has been signed between PLMP and various industry-players currently based in the city of Batam (the largest city in Riau region). Three of the firms that signed the MoU are Central Distribusi Batam, Agency for Free Trade Zone, and Free Port of Batam, according to the press release published by PLMP Fintech.
Under the partnership PLMP will first of all conduct a pilot of using blockchain to unify the channels of communication between buyers and sellers of Batam. The company will use its own blockchain protocol Creatanium for this pilot. Once the pilot is successful, the same protocol and tools will be implemented across the shipping industry of Batam. The aim of the project is to increase time and cost efficiencies in the shipping sector of Riau islands. The press release said:
“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. Where inefficiencies in the transportation and delivery of goods within certain territories lead to higher prices for basic commodities like rice or sugar, PLMP Fintech’s blockchain solutions can bring the transparency and traceability needed to create an even ground.”
Blockchain’s role in the shipping and logistics sector is something that has been realized by the players involved from quite some time. There’s a reason why we have some companies focusing solely on providing blockchain solutions to the shipping industry (i.e. ShipChain, BitNautic etc). Now if this experiment is successful we may certainly see the implementation of blockchain in shipping sectors of other countries as well.