Jakarta. Logistics firm Andalin recently announced that it had inked a memorandum of understanding with the Association of Indonesian Oil and Gas Companies (Aspermigas), in a bid to develop their export growth strategies and provide digital shipping service for association members.

According to Andalin, the collaboration marks an important leap in the supply chain for the oil and gas industry in Indonesia, focusing on achieving greater efficiency for the industry.

The deal also enables Aspermigas members to make use of Andalin’s digital platform to manage their export-import shipments.

"Andalin, a digital-based company in international logistics, recognizes the value of incorporating digital platforms to optimize the potential and efficiency of the oil and gas industry's shipments," Andalin chief executive officer Rifki Pratomo said in a recent press statement.

"Andalin and Aspermigas are working together to streamline their supply chain and enhance international logistics. Andalin offers sea and air freight services on our platform for Aspermigas members in need of these services," Rifki said.

According to Moshe Rizal, the head of the investment committee at Aspermigas, this collaboration gives association members the opportunity to maximize their potential.

“We joyfully welcome the collaboration between Andalin and Aspermigas. By uniting the strengths of the Andalin digital platform and our networks, we believe that this partnership is mutually beneficial, and a tangible contribution from both of us in supporting the growth of the Indonesian oil and gas industry," Moshe Rizal said.

The partnership is also expected to strengthen Andalin’s position in the oil and gas industry’s supply chain.

According to Technavio, the global freight logistics market size in Indonesia is estimated to grow by $28.7 billion from 2022 to 2027. During the forecast period, higher oil prices, increasing industry demand, and rising global commodity prices are anticipated to positively impact Indonesia's trade.

Indonesia has large upstream oil and gas potential with 68 potential unexplored basins and proven oil reserves of 2.4 billion bbl (blue barrels) and proven gas reserves estimated at 43 trillion cubic feet.