Palapa Ring East Broadband

Active

Prospective

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 East package entails the laying of 6,300 km submarine fiber-optic cable connecting East Nusa Tenggara, Maluku, Papua and West Papua. PT Palapa Timur Telematika is a consortium made up of Moratelindo, IBS and Smart Telecom, of which the last two are companies affiliated with Sinar Mas Group. 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 worth Rp 5.13 trillion ( approximately $385.3 million). 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. Project investment is estimated at $385.3 million and is being funded by debt and equity in 78:22 ratio. BNI provided IDR 2.1 trillion, while ICBC Indonesia gave IDR 1.3 trillion, IDR 300 billion from Bank Papua, IDR 200 billion from Bank Sulselbar, and IDR 100 billion from Bank Malukumalut. Financial closure was achieved on March 27, 2017. http://www.thejakartapost.com/news/2017/03/29/palapa-rings-eastern-project-to-begin-in-july.html http://www.jakartaglobe.beritasatu.com/business/eastern-palapa-ring-project-secures-300m-loan-five-banks/ http://www.en.netralnews.com/news/business/read/3252/bni.leads.syndicated.financing.for.east.package.of.palapa.ring.project PT Palapa Timur Telematika is a consortium made up of Moratelindo, IBS and Smart Telecom, of which the last two are companies affiliated with Sinar Mas Group. Ownership split is not available.

Information and communication technology (ICT)

World Bank Group

Project

Broadband, Government, Telecommunications, Commercial, Water Supply and Storage, Seaport