elecommunication developer PT Palapa Timur Telematika will commence in July the construction of a broadband network in the eastern part of the country under the Palapa Ring project.
The firm, which is a consortium made up of Moratelindo, IBS and Smart Telecom, signed in September an agreement with the government under which the former is committed to building 8,454 kilometers of cables through East Nusa Tenggara, Maluku, West Papua and Papua.
“As the person responsible for the partnership project, I declare that the cooperation agreement effective,” Communications and Information Minister Rudiantara said on Wednesday.
After the deal comes into effect, the developer will have 18 months to carry out construction.
Five banks, namely state-owned lender Bank Negara Indonesia (BNI), private lender ICBC Indonesia, government-owned banks Bank Papua, Bank Maluku Malut and Bank Sulselbar, will disburse a syndicated loan totaling Rp 4 trillion (US$300 million) out of overall construction costs of Rp 5.13 trillion for the eastern network.
The Rp 14 trillion Palapa Ring project comprises three sections – the west, central and east – that will span around 13,000 km. It aims to expand domestic broadband service nationwide, particularly in frontier, outermost and remote regions. (lnd)
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