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Indonesia signs framework agreement with World Logistics Passport

Christian Fernsby |
Indonesia has signed a formal framework agreement with the World Logistics Passport (WLP), a major initiative to increase trading opportunities between emerging markets.

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Topics: INDONESIA   

Having become the first South-East Asian nation to join the programme following the registration of the Indonesia National Shippers’ Council, the latest agreement marks a major step forward in Indonesia’s implementation of the WLP with the support of government authorities.

The framework agreement was signed by Sultan Ahmed bin Sulayem, Chairman of Dubai's Ports, 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 Council previously registered with the WLP as a benefits provider, an important role within the programme as part of which the organisation will offer discounted market advisory services to WLP members.

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

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

Foreign trade makes up about 43 percent 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.

The WLP loyalty programme provides traders with a number of financial and non-financial benefits that will facilitate increased trade volumes, spread across a four-tier membership scheme.

Global brands leveraging the WLP and its benefits include anchor tenants such as UPS, Pfizer, Sony, Johnson & Johnson, and LG, all part of the programme’s Platinum tier. The WLP also provides participating members with access to Gold and Silver tiers of benefits, which vary based on the value and frequency of trade.


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