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Jumat, 05 Februari 2021 14:22

Supported by National Shippers' Council, Indonesia Join The World Logistics Passport

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DUBAI - The World Logistics Passport (WLP), a major policy initiative established to increase trading opportunities between emerging markets, announces Indonesia, India, and South Africa as members. They join Colombia, Senegal, Kazakhstan, Brazil, Uruguay, and the UAE in a club of trading nations sharing expertise to smooth trade flows around the world.

The WLP creates opportunities for business across Africa, Asia, Central and South America to improve existing trading routes and develop new ones, through the world's first logistics loyalty program for freight forwarders and traders. It overcomes non-tariff trade barriers by fast-tracking cargo movement, reducing administrative costs, advancing cargo information, and facilitating movement between ports and air.

Take, for instance, the cargo journey from Jakarta to Johannesburg. Transporting high-value, low-weight goods through historically established transport routes in Europe takes considerably longer, and is, therefore, more expensive, than if the goods pass through Dubai. Through the WLP, traders can expect to save 25% on freight costs and 10% on transit time moving goods from Indonesia to South Africa.

The WLP has a proven track record. In Dubai, 12 local providers have confirmed more than 50 benefits which have in turn been applied to over 300 traders, accounting for approximately 50% of the emirate's trade. Since its inception in 2019, the WLP has generated more than AED 3 billion in total trade.

"The World Logistics Passport increases resilience in global supply chains and removes the barriers that prevent developing economies from trading as freely as they might, which is more important than ever as governments around the world seek to recover from the economic impact of COVID-19," Mike Bhaskaran, CEO of the World Logistics Passport, said in a statement, Wednesday (3/2/2021).

"Today's announcement shows that governments and businesses are thinking differently about how goods and services move around the world, and we are delighted to welcome Indonesia, India, and South Africa to the club," he added.

Indonesia the first South-East Asian nation to the join

Indonesia is a strategically important market for the WLP, as it represents a region key to the WLP concept for its fast economic growth driven by manufacturing exports.

The WLP will complement and reinforce the headline aims of the final stage of the Long-Term National Development Plan (RPJPN) 2005-2025, specifically in terms of boosting national competitiveness and higher-wage job creation across all of Indonesia's varied geographies. This vision can be achieved by strengthening the distribution system that ensures efficiency and integration of the domestic market into the global market.

Statistics Indonesia (Biro Pusat Statistik) notes that Indonesia's exports reached USD 16.54 billion in December 2020, a 14.63% year-on-year increase, while imports decreased by 0.47% to USD 14.44 billion (year-on-year comparison).

The WLP now counts the Indonesia National Shippers' Council (INSC) as a partner, which will provide benefits related to navigating the local market. Last year, the INSC signed a Memorandum of Understanding with PCFC in Dubai to realize trade cooperation, thus the registration can be seen as an evolution of an already entrenched and fruitful partnership.

"We are very excited about joining the World Logistics Passport global network as a partner and benefits provider. We believe the shippers of Indonesia will greatly benefit from this global incentive program to boost south-south trade," said Toto Dirgantoro, Chairman of INSC (Depalindo).

The WLP now counts Mumbai International Airport (Chhatrapati Shivaji Maharaj International Airport), Nhava Sheva International Container Terminal (Mumbai), and Emirates SkyCargo in India & Nepal as partners. The WLP now looks forward to welcoming the participation of the Ministry of Commerce & Industry to represent the government's oversight of local operations, and the CBIC (Customs) as a partner, as well as other regional organizations.

The Johannesburg Chamber of Commerce has signed a framework agreement with the WLP and bilateral negotiations with the government continue. Joining the WLP will be a key enabler of the African Continental Free Trade Agreement, opening up new market potential among countries in the region.

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