Indonesian Political, Business & Finance News

Interest in ‘Palapa Ring’ Project

| Source: GOI
Five companies have expressed interest in taking part in a $1.517-billion broadband fiber optic mega-project tender, an official said Tuesday (23/1/07).

"The five companies have already met requirements for participation in the tender on the Palapa Ring mega-project," Yusuf Iskandar, Director General of Post and Telecommunications, said on the sidelines of an Information Communication and Telecommunication Summit 2007, Antara reported.

The five firms are PT Aqela, PT Potensi Bumi Sakti, PT Telkom, PT Bakrie Telecom and PT Wireless Indonesia (WIN), a telecommunications subsidiary of the Sinar Mas Group.

The Palapa Ring would be a broadband fiber optic network which can carry high speed and high capacity data. The network would consist of seven fiber optic rings connecting Sumatra, Java, Kalimantan, Nusa Tenggara, Sulawesi, Maluku and Papua as well as eight back hauls.

"The network project is aimed at developing the telecommunication sector, encouraging economic growth and reducing the digital gap," Iskandar said.

In view of the huge amount of investment involved, the government would give the five companies a chance to set up a consortium, he said.

"The five firms have generally agreed to form a consortium and none of them has said it is ready to finance the mega-project by itself," he said.
Tags: business
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