In a bold move towards integrating digital technologies within its trade practices, the Indonesian Directorate General of Customs and Excise has officially adopted the blockchain-based shipping platform TradeLens. This significant step comes after several months of collaborative platform implementations, highlighting the country’s commitment to embracing innovation in customs operations.
TradeLens Consortium Expands
With this addition, Indonesia’s customs department becomes the 11th government agency to join the TradeLens consortium. This group is not just a casual meetup over coffee; it includes customs authorities from various nations, such as Thailand, Azerbaijan, and Canada, all of whom are keen to enhance trade efficiency through the power of blockchain.
Words from the Top
Tan Wijaya, the president director of IBM Indonesia, shared his optimism regarding this partnership. He hopes it will not only “benefit all stakeholders in the entire logistics ecosystem” but also propel the overall modernization of trade within the region. In other words, we can expect a giant leap forward in how we trade, complete with fewer headaches and more efficiency.
The Mechanics of TradeLens
The TradeLens platform is no ordinary shipping app. It utilizes permissioned blockchain technology to ensure that supply chain data remains both secure and transparent. With the capability to process around 10 million supply chain events each week, it allows for quick trade and customs verification, slashing the reliance on outdated paper processes.
A Milestone for Global Trade
Launched in August 2018 through a partnership between IBM and the Danish transport giant Maersk, TradeLens aims to revolutionize how global shipping is managed. Recently, the U.S. Federal Maritime Commission added another layer of credibility by granting an antitrust exemption to five members of the consortium to share vital data concerning American supply chain operations.
Indonesia’s Cautious Embrace of Blockchain
This announcement follows closely on the heels of Indodax, Indonesia’s longest-standing cryptocurrency exchange, receiving its branding licensing from the country’s Commodity Futures Trading Regulatory Agency (BAPPEBTI). This regulatory body operates under the Ministry of Trade and is responsible for overseeing cryptocurrency activities in Indonesia. Last year, they mandated that all virtual currency exchanges register with BAPPEBTI, prompting Indodax to formalize its operations despite being in the game since 2014.
Looking Ahead
The adoption of TradeLens by Indonesia’s customs department signifies a pivotal moment in the nation’s trade journey. As various players in the logistics ecosystem rally around blockchain technology, the potential for more streamlined and efficient trade practices is certainly on the horizon.
