27 companies apply for Indonesia fiber tender

10 Aug 2015

Major telecom and ICT companies including PT Telkom Indonesia, PT Indosat and XL Axiata have all registered to take part in a bid for a $246.7 million fiber project in Indonesia.

All told 27 companies have signed up to take part in the bid for the Palapa Ring II cable project, which will involve rolling out 8,395km of subsea cable in the nation, Deal Street Asia reported.

Once complete, the Palapa Ring II will be designed to serve as the backbone for internet connections across Indonesia's 33 provinces.

Other major players involved in the bid include NTT Indonesia and Cyber Network Indonesia. The winner of the bid will be allowed to form a consortium for the project. The government will not provide any subsidies to the winner.

The tender covers two stages. The first stage will cover 11 regions in the western part of the nation. The winner will have to install a 1,823km cable at a cost of around $56.6 million. The second stage covers 40 regions in eastern Indonesia, for a total of 6,572km of cable and a cost of $181.1 million.

The project has been planned for 10 years, and is expected to be completed in 2018.

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