Indonesia has signed a formal framework agreement with the World Logistics Passport (WLP), a major initiative to increase trading opportunities between emerging markets.
With this agreement, the country will become the first South-East Asian nation to join the program following the registration of the Indonesia National Shippers’ Council (INSC).
The deal was signed as part of wider cooperation between the UAE and Indonesia to enhance bilateral relations and provide opportunities for private and public institutions to jointly expand existing trading routes and establish new ones, thus increasing annual trade between the two countries.
“We continue to work to realize UAE’s and Dubai’s vision for a more integrated global economy by delivering on the WLP’s objective of removing barriers to South-South trade, building on the city’s growing status as an international center for trade. We are confident that the agreement between the National Shippers’ Council and WLP will support Indonesia’s efforts to accelerate future trade opportunities and economic growth. Indonesia is a strategically important market for the WLP, as its manufacturing exports are highly in demand across the world. As a beacon for economic progress in the ASEAN region, Indonesia’s entry into the WLP will propel its leadership’s vision to strengthen Jakarta’s position as a major logistics hub and gateway for trade between the Asia Pacific region and the world. Through this collaboration, we seek to support Indonesia’s efforts to realize its goal of a sustainable economy and bring benefits to its people, by offering Dubai’s experience and capabilities in creating a global commercial hub.”
The WLP supports the Indonesian government in implementing its economic plans, which include the construction of transportation nodes and networks in the archipelago as part of Indonesia’s goal to become one of the world’s top five economies by 2045.
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 the Middle East, South America, Africa, Eastern Europe, and others. We are optimistic that the WLP network will have a very positive impact on the Indonesian economy. In the next Asia Shippers Council annual meeting, we will propose to make WLP one of the solutions for reducing logistics costs.”
Foreign trade accounts for roughly 43 percent of Indonesia’s overall GDP, and by joining the WLP, the nation can obtain access to new markets in South America and Africa. Furthermore, the country will be able to expand its economy as a re-export center.