Singapore-based blockchain firm PLMP Fintech has signed an MOU with the Agency for Free Trade Zone and Free Port of Batam as well as Indonesian firm Central Distribusi Batam for the development of a multi-million project.
The project, to be done in partnership with the Ministry of Trade, 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 own 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”, said Clayton Ong, PLMP’s country manager in Indonesia.
Our solutions will allow for round-the-clock updates on the exact location of moving goods to prevent delays and optimise the whole process”, PLMP Fintech’s co-founder Kym Kee 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.
PLMP Fintech believes that its blockchain solutions can bring the transparency and traceability needed to create an even ground, where inefficiencies in the transportation and delivery of goods within certain territories lead to higher prices for basic commodities like rice or sugar.
The project is part of PLMP Fintech’s plan to build up a strong blockchain ecosystem based on its own protocol and a diversified source of revenue from technological solutions to digital assets.
PLMP said its own digital currency Creatanium — backed by a number of projects already in the pipeline around Southeast Asia, last one of which in Batam, and by market confidence — has already surpassed parity with the US dollar in less than a year from its launch in May 2018.