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Development of optic fiber network in Indonesia.

A number of telecommunication operators and multimedia service providers in the country have used fiber optic network like PT. Telekomunikasi Indonesia (Telkom), PT Indosat, PT Excelcomindo, and Indonesia Comnet Plus (Icon+), PT. Supra A relational DBMS from Cincom Systems, Inc., Cincinnati, OH (www.cincom.com) that runs on IBM mainframes and VAXs. It includes a query language and a program that automates the database design process.  Primatama Nusantara (Biznet) and PT. Powertel.

The networks already cover a number of the country's main islands such as Java, Sumatra, Bali, Kalimantan, and Sulawesi.

Telkom, a state company and the country's largest telecommunication company, has the longest fiber optic network in Indonesia reaching 13,600 km, followed by Excelcomindo's 9,950 km and that of Icon + 6,000 km.

Another fiber optic network operated by Telkom is an international network of Thailand-Indonesia-Singapore (TIS) coming into operation in December 2003.

The TIS network is 1,200 km long linking Songkhla (Thailand), Batam (Indonesia), and Changi (Singapore) to be connected with high capacity submarine cables of other countries.

This network is operated in cooperation between Telkom, Singapore Telecommunications Singapore Telecommunications Limited (SGX: T48, ASX: sgt) (commonly abbreviated as SingTel) and formerly known as Telecom Equipment, is Singapore's largest telecommunications company.  Ltd (SingTel) and Communications Authority of Thailand (CAT). The three operators has invested US$30 million each

PT Telkom continues to expand net networks

Telecommunications players have continued to expand their fiber optic networks to increase their capacity. Telkom plans to start construction of a submarine fiber optic network in 2009 to link Java--Bali--Lombok, several places in Kalimantan, and Sulawesi--Kalimantan.

The fiber optic network of Sulawesi-Kalimantan will reach 3,139 kilometers consisting of network of 2,734 KM in Sulawesi and 405 KM in Kalimantan.

Ring-1 will cover Makassar, Parepare, Watampone, Bulukumba and Makassar (South Sulawesi South Sulawesi is a province of Indonesia, located on the western southern peninsula of Sulawesi island. The province is bordered by Central Sulawesi province to the north, South East Sulawesi province to the east and West Sulawesi province to the west (West Sulawesi province was ). Ring-2 to cover Parepare, Palopo (South Sulawesi) Parigi, Palu (Central Sulawesi Central Sulawesi (Sulawesi Tengah) is a province of Indonesia located in the heart of Sulawesi. It was established on April 13, 1964.

Central Sulawesi has an area of 68,033 km (26268 sq mi) 
), Majene, Mamuju (West Sulawesi West Sulawesi or Sulawesi Barat (short form Sulbar) is a province of Indonesia, created in 2004. It is on the island of Sulawesi (formerly, Celebes) and includes the regencies (kabupaten ), Pinrang, and Parepare (South Sulawesi) and Ring-3 to cover Parigi (Central Sulawesi), Gorontalo, and Manado (North Sulawesi North Sulawesi (Indonesian: Sulawesi Utara) is a province of Indonesia. It is on the island of Sulawesi, and borders the province of Gorontalo to the west (originally a part of North Sulawesi until 2001 when it became its own province). ).

This project is named 'JaKa2LaDeMa' and will need an investment of US$110 million. It is to be completed in mid 2010. The network will be used as a backbone to promote data and voice traffic, e-commerce, and video.

The contractor to build the project is Fujitsu from Japan. In this project, Fujitsu will cooperate with a German partner Norddeutsche Seekabelwerke GmbH (NSW NSW New South Wales

Noun 1. NSW - the agency that provides units to conduct unconventional and counter-guerilla warfare
Naval Special Warfare
).

NSW will provide repeater which will be integrated with repeated cables, while Fujitsu as the main director, will provide terminal, repeaters, branching units system integration, and all services needed by the project.

In mid 2008, Indosat also began to build submarine cable communication system (SKKL) to reach 1,300 kilometers linking Java--Kalimantan--Batam--Singapore.

The project, which will have 4 landing points in each island such as: Tanjung Pakis (Karawang, West Java), Sungai Kakap (Pontianak, West Kalimantan), Tanjung Bemban (Batam) and Changi (Singapore), is named Jakabare.

Construction of the Jakabare SKKL which will have a bandwidth capacity of 160 to 640 Gigabit per second (Gbps) is expected to be completed in the first half of 2009. This network will also be used to promote the network capacity of service of the Indonesia--Singapore route. The project will be built by Indosat in cooperation with NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98).

NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd.
 Corporation.

Powertel, a new player, plans to continue to expand its fiber optic network to reach 3,400 km, including 2,400 km to link cities in Java connected with railways and 1,000 km to link electric poles.

Powertel also plans to build 2,000 km long fiber optic network between cities connected with railways in Sumatra.

Powertel was established in 2004 to operate in closed fixed line service using the technology of Broadband over Powerline (BPL See broadband over power lines. ).

The players are mainly telecommunication companies which concentrate in development of network of backbone fiber optic between cities or islands to support voice and data traffic of their telecommunication business.

However, there are some developing "last mile" network in the form of Metronet such as Indosat through its subsidiaries Indosat Mega Media (IM2), and Icon+.

Player like Biznet concentrates in development of fiber optic network for last mile in large cities.

The strategy used by Biznet is developing Metronet to be connected with business buildings. Currently Biznet has established connections with 263 buildings including 248 buildings in Jakarta, 5 in Surabaya, 1 in Bogor, 3 in Bandung, 4 in Tangerang with its fiber optic.

[ILLUSTRATION OMITTED]

Contractors of fiber optic projects in Indonesia

NEC from Japan is a vendor for fiber optic network often used by telecommunication operators in Indonesia. A number of projects like RMJ RMJ Richard Mentor Johnson (ninth Vice President of the United States)  SKSO Fiber Optic cable Noun 1. fiber optic cable - a cable made of optical fibers that can transmit large amounts of information at the speed of light
fibre optic cable

transmission line, cable, line - a conductor for transmitting electrical or optical signals or electric power
 of Package III in Kalimantan of Telkom, Dumai--Melaka Cable System (DMCS DMCS Des Moines Christian School (Des Moines, IA)
DMCS Document and Material Control System
DMCS Data Management and Control System
DMCS Director of the Marine Corps Staff (US DoD) 
) of Telkom and Telekom Malaysia, and SKKL of Indosat using NEC as the vendor.

Meanwhile, Fujitsu won other projects of Telkom such as 2,999 km long Jasuka (Jaea--Sumatra--Kalimantan).

Development of Palapa pa·la·pa  
n.
1. An open-sided dwelling with a thatched roof made of dried palm leaves.

2. A structure, such as a bar or restaurant in a tropical resort, that is open-sided and thatched with palm leaves.
 Ring Project

The Palapa Ring project is a fiber optic network project in eastern Indonesia initiated by the government and to be carried out by a number of major telecommunications companies PT. Telkom, PT. Indosat, PT. Excelcomindo Pratama and PT. Bakrie Telecom.

This project was earlier estimated to cost only US$180.4 million. The networks total 4,450 km in length including 3,850 km under the sea and 600 km on land. It will have 15 landing points to go across 21 regencies/cities in eastern Indonesia.

This project was to be completed this year, but its implementation has been delayed. The stumbling blocks include the soaring cost from earlier estimate of US$180 million to US$700 million as a result of the surges in the prices of optic cables and equipment.

The joint venture investment of US$180 million was to be provided by PT Telkom US$90 million, PT Indosat Tbk US$30 million, PT Excelcomindo Pratama Tbk US$30 million and PT Bakrie Telecom Tbk US$30 million.

The investment value was reduced with the falling value of the rupiah ru·pi·ah  
n. pl. rupiah
See Table at currency.



[Hindi rupay, rupiy
 that has weakened to the level of 11,000 per US$. With the rupiah was weakened to that level the joint venture investment fell by US$30 million. The cost was estimated when the rupiah was at 9,000 per US$.

The government as the facilitator has decided to use the Universal Service Obligation (USO USO: see United Service Organizations.


(UNIX Software Operation) AT&T's Unix division before it turned into USL. See Unix.
) fund as a soft loan for the consortium to cover the shortage in fund.

The USO fund is raised from a contribution of 1.25% of the gross income of service and telecommunication network operators. Last year USU USU Usually
USU Utah State University (Logan, UT)
USU Uniformed Services University
USU Ural State University (Ekatherinburg, Russia)
USU Universidade Santa Úrsula
 fund totaled Rp1.6 trillion.

The funding is made through a special team called ICT (1) (Information and Communications Technology) An umbrella term for the information technology field. See IT.

(2) (International Computers and Tabulators) See ICL.

1. (testing) ICT - In Circuit Test.
 (information communication technology) The team is made up of officials of the office of the state minister for communications and informatics, the National Development Planning Board, and the finance ministry and the office of the coordinating minister for economy. However, until now it is not yet clear how the funding mechanism will work.

Meanwhile, vendors that took part in the tender as the contractors of the Palapa Ring project include NEC Corporation, NSW-Fujitsu and Alcatel-Lucent. The winner of the tender is yet to be announced To be announced (TBA)

A contract for the purchase or sale of an MBS to be delivered at an agreed-upon future date but does not include a specified pool number and number of pools or precise amount to be delivered.
 as the prices offered by the bidders are much higher or twice as much as earlier estimate.

Meanwhile the vendors already utilized their full capacity at present as there are many fiber optic network projects in the world. Therefore, its is almost impossible for them to complete the project this year as originally scheduled.

The delay in the implementation of the project results in delay in the order for equipment needed by the project.

[ILLUSTRATION OMITTED]

Conclusion and prospects

With the fast growing telecommunications industry in Indonesia and abroad, fiber optic network is expected to remain high in demand in the country and in the world in general.

Fiber optic networks are vital for telecommunications companies. Telecommunications companies which focus on voice and data services will tend to develop backbone network inter city, inter-island with nation wide coverage.

Ones which focuses on closed fixed service tend to develop last mile network in large cities. This network generally provide connections commercial buildings and later expected to also cover houses with the growing demand for data communication service.

The global crisis is expected to affect plans of telecommunications companies in Indonesia in building fiber optic networks but when the condition improves they are expected to immediately resume their projects.
Table--1
Fiber optic network providers, length of network and coverage, 2008

                      Length of
                       network
Players                 (km)             Coverage

Telkom                   13,600   Java-Sumatra, Java-
                                  Sulawesi--Kalimantan

PT Excelcomindo           9,950   Sumatra--Java--Sulawesi
                                  --Kalimantan

Icon +                    6,000   Java--Bali

Indosat                   4,000   Java, Sumatra, Kalimantan,
                                  Sulawesi

Supra Primatama             250   Jakarta, Karawang,
Nusantara (Biznet)                Tangerang, Bogor,
                                  Bandung, Surabaya,

Powertel                    141   Jakarta--Cikampek--
                                  Bandung, Tanah Abang--
                                  Ged. Cyber--Serpong

Source: Data Consult

Table--2
Vendors of fiber optic networks in several network projects
in Indonesia

                                         Length      Network
   Operator           Projects            (km)        vendor

Telkom           Installation of                    NEC
                 Fiber Optic RMJ
                 SKSO cable of
                 Package III
                 Kalimantan

                 JaKa2LaDeMa'              3,139    Fujitsu
                                                    and
                                                    NSW

                 Jasuka (Java--            2,999
                 Sumatra--
                 Kalimantan)

Telkom--         Dumai--Melaka               150    NEC
Telekom          Cable System
(Malaysia)       (DMCS)

Telkom           High Performance          2,000    Siemens
                 Back Bone (HPBB)                   -Pirelly
                 Sumatra

Indosat          Sea cable                 1,300    NEC
                 communications
                 system (SKKL)
                 Jakabare (Java,
                 Kalimantan,
                 Batam, Singapore)

Icon +           Procurement of
                 conductor and
                 fiber optic project

Excelcomindo                                 550    Alcatel
                                                    Lucent

                     Vendors of          Value
                       fiber             (US $
   Operator             optic           million)       Year

Telkom           PT. Jembo                               2008
                 Cable
                 Company,
                 Tbk

                                              110        2009

                                               52

Telkom--         --                           9,3        2005
Telekom
(Malaysia)

Telkom                                         65

Indosat          --                                     2008-2009

Icon +           PT. Voksel                              2007

Excelcomindo                                   31       2008-2009

Source: Data Consult
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Title Annotation:TELECOMMUNICATION
Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Mar 1, 2009
Words:1530
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