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Jakarta Post

RI one step closer to faster internet

Citizens in the furthermost regions might find themselves one step closer to faster, stronger internet following the signing of a cooperation agreement for the development of the eastern section of the landmark Palapa ring fiber optic network

Fedina S. Sundaryani (The Jakarta Post)
Jakarta
Fri, September 30, 2016

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RI one step closer to faster internet

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itizens in the furthermost regions might find themselves one step closer to faster, stronger internet following the signing of a cooperation agreement for the development of the eastern section of the landmark Palapa ring fiber optic network.

The agreement was signed on Thursday between the Communications and Information Ministry and Palapa Timur Telematika (PTT), a consortium made up of Mora Telekom Indonesia (Moratelindo), Inti Bangun Sejahtera and Smart Telecom.

The 15-year contract is worth Rp 14 trillion (US$1.08 billion) and will open the way for the construction of 8,454 kilometers of cable through East Nusa Tenggara, Maluku, West Papua and Papua.

Thursday also marked the financial closure of the network’s central section that stretches across Kalimantan, Sulawesi, and North Maluku. The development of the central section will take place in a 15-year period that is estimated to cost Rp 3.5 trillion.

President Joko “Jokowi” Widodo applauded the event and emphasized that the country was in danger of being “left behind” by other countries if it did not increase internet penetration and develop its e-commerce industry.

“With software applications, those in big cities can enjoy ordering martabak [Indonesian style pancake] immediately from home. We can order lamb satay from the warung [shop] and you can have it delivered to your house without even going out,” Jokowi said.

“Imagine if you can do that with products from farmers, fishermen, from those in the villages using incredibly fast connection.”

The Palapa Ring undersea cable project is the first government-to-business cooperation scheme in the telecommunications industry and aims to expand national broadband service availability to all regions, as well as to help reduce usage costs.

The project is crucial to Jokowi’s vision of establishing Indonesia as the largest digital economy in Southeast Asia, with a total value of $130 billion by 2020.

Indonesia’s e-commerce market was estimated to be worth Rp 18 trillion in 2015, with 37 million consumers from a total population of 255 million, according to World Economic Outlook data compiled by the Internet Service Providers Association.

Communications and Information Minister Rudiantara said that the whole fiber optic network would be operational by 2019 and would connect all 514 regencies nationwide.

“The current download rate in Jakarta is currently around 7 megabytes per second, whereas it is only around 300 kilobytes per second in the eastern part [of Indonesia]. After we have completed [the project] in 2019, we hope that the rate in villages will be a minimum of 1 megabyte per second,” he said on the sidelines of the signing and financial closure ceremony.

Meanwhile, the Palapa ring’s western section will also be developed by Moratelindo and will involve laying down 1,980 kms of cable in the Riau and Riau Islands regions with a 15-year contract worth Rp 3.4 trillion.

Moratelindo president director Galumbang Menak Simanjuntak was optimistic that the western cable would be operational by 2017, a year earlier than expected.

“While others only start working after the financial close has been completed, we began working in a parallel manner and prepared the construction while waiting for the financial close,” he said.

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