The technology is suitable for application in big ports, as it does not rely on a server and could be operated for 24 hours, according to Kadin.
Indonesia faced with the problem of high logistical cost as a result of overlapping regulations among ministries or institutions, Rustombi said.
Customers wishing to send goods to Indonesia will have to face a long and complicated process for documentation and administration, he said.
However, blockchain technology application will reduce the logistical cost, improve efficiency, transparency and safety, Rustombi noted.
"We should have an efficient and cheaper logistical cost so that Indonesia could improve its competitiveness as compared to other countries," he said.
Blockchain is a time-stamped series of an immutable record of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data is secured and bound to each other using cryptographic principles.
The technology did not use a third party in the process of data transfer in a transaction. It is not managed by a single organization but by many institutions.
Kadin Indonesia has partnered with Blockchain Asia Forum (BAF) to encourage the implementation of blockchain technology in various national industries.
Blockchain is a global trend that will have a significant impact on business in the future, where those who are able to apply technology and innovation in their value chain will take the best position in global competitiveness, Chairman of Kadin Indonesia Rosan P. Roeslan said.
This technology has the potential to transform the financial sector as well as other sectors, especially with regard to reforms in the transaction system, according to Roeslan. (INE)
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