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Palapa Ring



Communication system in this digital era demands efficiency in transferring information to technology and communication users around the world. This efficiency is, of course, the speed of time in delivering messages and accessing digital information online. This matter encourages scientist and experts to invent new technology on digital information that facilitate these needs.  Regarding this matter, the government of Indonesia through the Ministry of Communication and Informatics (“MENKOMINFO”) commenced the Palapa Ring Project as a nationwide fiber-optic network construction project that will cover 34 provinces, 440 cities/districts with total 35.280 kilometer length of submarine cables, and 21.807 kilometer length of cable on the mainland. Palapa Ring is one of the most strategic infrastructure projects in Indonesia as stipulated in Presidential Regulation No. 3 of 2016 that also categorized as National Priority Project in Infrastructure.

The government will spend around IDR 2.7 trillion (US$207 million) on broadband infrastructure projects as part of its efforts to close the gap in internet access between rural and urban areas across Indonesia. MENKOMINFO has signed two contracts for the western and central packages. Hermawan Juniarto has succeeded in assisting PT Sarana Multi Infrastruktur (PT SMI) as transaction advisor to MENKOMINFO in negotiating these contracts since 17 March 2016. The western package which is worth IDR 1.3 trillion will go to the Moratelindo-Ketrosden Triasmitra consortium. The western package cooperation agreement was signed on the 29 February 2016.  Whereas, the central package, worth IDR 1.4 trillion, will be handled by the Pandawa Lima consortium and the cooperation agreement was signed on the 4 March 2016. Hermawan Juniarto is also assisting on the procurement of the eastern package which is expected to be concluded on mid 2016.

Western package will cover 5 cities/districts from Riau until Natuna, whereas middle package will cover 17 cities/districts including Kalimantan, Sulawesi, and North Maluku. The eastern package will cover East Nusa Tenggara, Maluku, West Papua, and Papua with total fiber-optic coverage of 6.300 kilometers. The project itself is expected to be completed in 2018 and ready to be operated in 2019. When the new infrastructure is fully operational, it is expected that more households will be able to enjoy faster internet connections.


Posted in Highlight on Mar 18, 2016