Indonesia joins World Logistics Passport as part of supply chain upgrade

Indonesia joins WLP

Indonesia has become the first South-East Asian nation to join the World Logistics Passport (WLP) as part of efforts to unlock its supply chain potential and improve relations with the UAE.

In a statement, the WLP said a framework agreement was signed Sultan Ahmed Bin Sulayem, Chairman of DP World, Customs and Free Zone Corporation (PCFC), and Toto Dirgantoro, Chairman of Indonesia National Shippers’ Council, in the presence of senior government officials in the Indonesian government.

The agreement was signed as part of a wider collaboration between the UAE and Indonesia to strengthen bi-lateral relations and create opportunities for private and public entities to actively improve existing trading routes and develop new ones, to increase the overall size of annual trade in the country.

Sultan Ahmed Bin Sulayem, Chairman of Dubai’s Ports, Customs and Free Zone Corporation said, “We are confident that through our latest agreement between the National Shippers’ Council and WLP, Indonesia will be accelerating future trade opportunities and economic growth.

“Indonesia is a strategically important market for the WLP, as its manufacturing exports see demand across the world.

“As a beacon for economic progress in the ASEAN region, Indonesia’s entry into the WLP will propel the leadership’s vision to strengthen Jakarta’s position as a major logistics hub and gateway for trade between East Asia and the world.

“Through this collaboration, Indonesia will secure and realize the goals of a sustainable economy to benefit its people, by harnessing our experience and capabilities in creating a centre for global trade in Dubai.”

The WLP contributes to the Indonesian government’s realisation of its economic plans, which which include building transportation nodes and networks across the archipelago, as it seeks to become one of the world’s top five economies by 2045.

Foreign trade makes up about 43% of the country’s total GDP, and by becoming a hub in the World Logistics Passport, Indonesia is set to expand its access to other markets in South America and Africa. The nation will also be able to grow its economy as a re-export hub.

Toto Dirgantoro, Chairman of Indonesia National Shippers’ Council, said, “INSC warmly welcomes and supports the WLP program. With the collaboration between INSC and WLP, it is hoped that Indonesian exporters can reduce logistics costs and improve the nation’s economy with greater export opportunities globally specially to Middle East, South America, Africa, Eastern Europe and others.

“With the WLP network, we are optimistic that it will have a very positive impact on the Indonesian economy. In the next Asia Shippers Council annual meeting, we will propose to make WLP as one of the solutions in reducing logistics costs.”

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