JAKARTA (TheInsiderStories) - President Joko Widodo on Thursday witnessed the Financial Close of the Palapa Ring for Central Indonesia region which will be developed by PT Palapa Timur Telematika at the State Palace.
Coordinating Minister for the Economy Darmin Nasution said the Palapa Ring project is one of national strategic projects and has also declared as a priority project under the current government. “The Palapa Ring project is a strategic project and plays crucial role in supporting evenly distributed national development,” he said.
According to Darmin, the Palapa Ring project develops optical fiber network that will be come backbone for the country’s national telecommunication system.
“The project connects all regencies and cities in Indonesia and proves the government’s commitment to meet the needs for adequate public infrastructure needs of the people, in particular in telecommunication sector,” he said. The project is also an implementation of the Presidential Decree No. 3, 2016 on national strategic projects.
Minister for communication and Information Rudiantara said as part of the Palapa Ring project, the government will develop fiber optic broadband network in regional areas for non-commercial purpose.
The Palapa Ring project is expected to be completed at end of 2018 and expected to reach out remote areas in western, central and eastern Indnesia region.
“Thus, in 2019, all capital cities of Indonesian regencies and municipalities will be connected by broadband network,” said Rudiantara.
The west package of Palapa Ring project covers Riau, Riau Islands provinces (including Pulau Natuna), and West Kalimantan with optical fiber length of 2,000 km. The western package of Palapa Ring project has been awarded to Moratelematika Indonesia and Ketrosden Triasmitra.
The Palapa Ring central package has been won by Pandawa Lima consortium whose members are PT LEN, PT Teknologi Riset Global Investasma, PT Sufia Technologies, PT Bina Nusantara Perkasa and PT Multi Kontrol Nusantara. They set up JV company called PT.LEN Telekomunikasi Indonesia.
The Palapa Ring eastern package has been won by JV company PT Palapa Timur Telematika in July 2016, whose members are Moratelindo, IBS, Smart Telecom.
Highlights of the Palapa Ring Project:
West Package
Area cover: Riau, Riau Islands
Length: 1,980 km
Contract Period: 15 years
Contract Value : Rp3.4 trillion
Developer: Moratelematika Indonesia and Ketrosden Triasmitra
Central Package
Area cover: Kalimantan, Sulawesi, North Maluku (including Sangihe-Talalud)
Length: 2,647 km of fiber optic cable
Contract Period: 15 years
Contract Value: Rp3.5 trillion
Developer : PT.LEN Telekomunikasi Indonesia
Eastern Package
Area cover: East Nusa Tenggara, Maluku, West Papua and Papua
Length: 8,454 km
Contract Length: 15 years
Contract Value Rp14 trillion
Developer : PT Palapa Timur Telematika
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