TEMPO.CO, Jakarta - Communications and Informatics Minister Rudiantara has signed a partnership agreement with PT Palapa Ring Barat as the contractor for the West Palapa Ring Project in Riau, Riau Islands, and West Kalimantan. In the project, the contractor will install 2,000 kilometers of fiber-optic cables.

"Once the agreement is effective, the Palapa Ring Barat is obliged to work on the construction for 18 months," said Rudiantara, yesterday, August 11, 2016.

The Palapa Ring project is the government's effort to provide fiber-optic networks as the state' telecommunications system backbone. The network will connect all regencies and cities in non-commercial areas. The goal is to provide broadband internet access that all citizens can enjoy. The project is divided into three categories based on location, the west, central and east.

The agreement between the Rudiantara and PT Palapa Ring Barat was completed on February 29. After fulfilling all preliminary and financing terms, the deal was put into effect yesterday.

The government's payment will be guaranteed by PT Penjaminan Infrastruktur Indonesia. Other institutions supporting this project are the National Development Planning Agency (Bappenas) and the Finance Ministry.

The West Palapa Ring project is undertaken by the consortium of Mora Telematika Indonesia and Ketrosden Triasmitra with a value of Rp3.5 trillion. Following the West Project, the government will start on the East Palapa Ring construction covering areas in East Nusa Tenggara, Maluku, West Papua and Papua. The Central Palapa Ring Project will cover Kalimantan, Sulawesi, Maluku, until the Sangihe-Talaud Islands.

DESTRIANITA