As many as 27 telecom and IT companies will be taking part in the tender for the Indonesian government-backed Palapa Ring II fiber-optic cable project worth $246.74 million. The tender is being carried out by the Indonesia’s Ministry of Communication and Information. The pre-qualification phase has been closed on July 31.
The ministry said 27 companies have registered to take part in the bid, including major telecom operators and information technology companies such as PT Telekomunikasi Indonesia Tbk (TLKM), PT Indosat Tbk (ISAT), PT XL Axiata Tbk (EXCL), PT NTT Indonesia (unit of Japan’s NTT) and PT Cyber Network Indonesia.
Those companies that meet the requirements will be shortlisted to take part in the tender. The date of the tender is yet to be announced.
The Palapa Ring II is broadband infrastructure project which is targeted to be completed in 2018, said Minister for Communication and Information Rudiantara.
“This project has been designed since 10 years ago. I’m confident this project will go ahead well,” he added.
The Palapa Ring II project will cover construction, operation and maintenance which will be divided into two pats. The first will be developed in 11 regencies/cities in western part of Indonesia. The bid winner will have to install fiber optic cable along 1,823 kilometers at an estimated cost of $56.63 million.
The second part will cover 40 regencies/cities in eastern part of Indonesia. The bid winner will be required to lay down fiber optic cable along 6,572 kilometers at an estimated cost of $181.11 million.
The Palapa Ring II would lay out a total of 8,395 kilometers of undersea fiber optic cables, providing the backbone for Internet connections across the archipelago’s 33 provinces and 460 cities and districts.
The project expands the Palapa Ring I network, which was completed in 2009. The Palapa Ring I project was carried out by Telkom alone after peers Indosat, XL Axiata, Bakrie Telecom and information technology firms Macca System Infocom, Infokom Elektrindo and Powertek Utama Internusa resigned from the consortium.
As with the first project, the government will not provide any subsidies for Palapa Ring II, but will allow the winner of the bid to form a consortium, Rudiantara said.