Five companies interested in Palapa Ring mega-project

Jakarta (ANTARA News) - The number of companies interested in taking part in a US$1.517-million broadband fiber optic mega-project bid has increased to 5, an official said here Tuesday.

"The five companies have already met requirements for participation in the tender on the Palapa Ring mega-project," Yusuf Iskandar, director general of post and telecommunication affairs, said on the sidelines of an Information Communication and Telecommunication Summit 2007.

The five firms that had expressed interest in the bid were PT Aqela, PT Potensi Bumi Sakti, PT Telecommunication Indonesia, Bakrie Telecom and PT Wireless Indonesia (WIN), a telecommunication subsidiary of diversified business company Sinar Mas Group.

The Palapa Ring would be a broadband fiber optic network which can carry high speed and huge capacity data. The network would consist of seven fiber optic rings connecting Sumatra, Java, Kalimantan, Nusatenggara, Sulawesi, Maluku and Papua as well as eight back hauls.

The 30,000-km-long ring would hopefully link 33 provinces and 440 cities/districts throughout the country.

"The network project is aimed at developing the telecommunication sector, encouraging economic growth and reducing the digital gap," Iskandar said, adding that the government would surely facilitate the network project.

In view of the huge amount of investment involved, the government would give the five companies a chance to set up a consortium, he said.

"The five firms have generally agreed to form a consortium and none of them has said it is ready to finance the mega-project by itself," he said.

A source at the post and telecommunication directorate general, however, said PT Aqela and PT Potensi Bumi Sakti were prepared to fund the project by themselves in cooperation with foreign investors.