Government to Set up Palapa Ring Consortium
Monday, 29 January, 2007 | 14:12 WIB

TEMPO Interactive, Jakarta: The government will set up a consortium for the Palapa Ring fiber optic network construction project worth US$1.517 billion, or around Rp13.8 trillion, at the end of May this year.

This project will be put out to tender during this October.

Gatot S. Dewa Broto, spokesperson for the Posts and Telecommunication Directorate General at the Information and Communication Department, said that the would-be investors for this project wanted a consortium to be set up.

“However, we will put it out to tender if later there are two consortiums that are interested,” said Gatot in Jakarta last weekend.

In order to perfect the Palapa Ring project concept, the Post and Telecommunication Directorate General has invited input from telecommunication consultants, the National Development Planning Agency (Bapenas), the Office of the Coordinating Minister for the Economy and notable telecommunication providers in Indonesia.

Details of the fiber optic network will be arranged in June, 2007.

The Palapa Ring project is designed based on feasibility test in determining optimum design in relation to future telecommunication traffic conditions.

The total length of the fiber optic network to be built will be 35,280 kilometers undersea and 20,737 kilometers on land.

The current fiber optic network was built by PT Telekomunikasi Indonesia Tbk, PT Excelcomindo Pratama Tbk., PT Indonesian Satellite Corporation Tbk. and PT. Comnet Plus.

The length of the fiber optic network which has been built is around 15,000 kilometers.

Now, said Gatot, five would-be investors have indicated their interest and sent in letters of intent: PT Bakrie Telecom Tbk., PT Wireless Indonesia, PT Telekomunikasi Indonesia Tbk., PT Aqela Communications and PT Potensi Bumi Sakti.

In addition, there are still 10 would-be investors and most are telecommunication operators which are not yet formally conveyed their interest.

From Kuala Lumpur, Telekom Malaysia Berhard—owning 59.63 percent of PT Excelcomindo Pratama Tbk. (XL)—acknowledged it is still interested in joining the Palapa Ring project tender.

Telekom Malaysia is also ready to set up a consortium to run this project.

Eko Nopiansyah and Ewo Raswa