Palapa Ring Central Broadband

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Palapa Ring Broadband project consists of three sections - West, Central and East and will stretch 11,000 kilometers of fiber optic cable across the archipelago. It involves a huge undersea fiber-optic cable network that will offer faster broadband to the entire archipelago. The Central package entails the laying of 2,647 km submarine and land-based fiber-optic cable connecting Kalimantan, Sulawesi and North Maluku. The consortium, Pandawa Lima, developing the Central section comprises the state-owned company PT LEN Telekomunikasi holding 51 per cent share, Teknologi Riset Global Investama - 34 per cent ownership, together with Sufia Technologies, Bina Nusantara and Multi Kontrol Nusantara, each with 5 per cent. Palapa Ring Broadband is a greenfield project undertaken under BOOT basis. Following a tender process, the consortium was entitled to a 15-year concession for the broadband connection. The concessionaires would recoup their investment through the availability payment scheme. Thus, the consortium does not collect fees from the fiber optic connection. Instead, they get guaranteed payments from the government over the period of the concession, as long as they deliver the project as specified. The project cost is estimated at IDR 1.38 trillion ($106.5 million as per FC date), of which IDR 975 billion ($75.3 million) is provided by non-bank financial institution Indonesia Infrastructure Finance (IIF), which acts as the syndication coordinator of state-owned lender Bank Negara Indonesia (BNI) and state-owned financing company Sarana Multi Infrastrutur (SMI). The concession contract is said to worth between IDR 3.5 trillion ($270.2 million) and IDR 4 trillion ($309 million) at NPV. Financial closure occurred on September 29.2016. http://jakartaglobe.id/business/govt-signs-second-palapa-ring-ii-concession-agreement/ https://www.kominfo.go.id/content/detail/9496/siaran-pers-no-35hmkominfo032017-tentang-rudiantara-paket-pembiayaan-program-palapa-ring-paket-timur-telah-terpenuhi/0/siaran_pers http://nusantaraeconomics.com/new-blog/2016/1/29/palapa-ring-west-and-central-packets-awarded http://jakartaglobe.id/business/government-agrees-rp-1-7t-west-palapa-ring-concession/ http://www.indonesia-investments.com/news/todays-headlines/palapa-ring-project-indonesia-construction-west-section-to-start/item7121? http://www.theinsiderstories.com/presiden-menyaksikan-penandatanganan-perjanjian-kerjasama-palapa-ring-di-istana-negara/ LEN Telekomunikasi 51 %, Teknologi Riset Global Investama 34%, Sufia Technologies, Bina Nusantara and Multi Kontrol Nusantara, each with 5%.