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Telkom Indonesia joins submarine optic cable consortium

Staff writer |
Through a subsidiary, state-owned telecommunications provider PT Telekomunikasi Indonesia (Telkom) has joined a consortium of 14 telecommunications operators worldwide to construct a submarine fiber optic cable network connecting Southeast Asia and Europe.

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The subsidiary, PT Telekomunikasi Indonesia International (Telin), signed contracts for the project in Kuala Lumpur, Malaysia, on March 7. Other signatories were the 12 Asian and two European telecommunications companies incorporated in the consortium known as Southeast Asia–Middle East–Western Europe 5 (SEA-ME-WE 5).

Telin president director, Syarif Syarial Ahmad, told The Jakarta Post that the value of the entire project was approximately $511 million. "We are contributing $63.4 million, and we are expecting an earnings before interest, taxes, depreciation and amortization margin of roughly 30 percent on average for this investment."

Indonesia has not been involved in the construction of international submarine cable systems for around 10 years. Once completed, the SEA-ME-WE 5 will be integrated with cable systems that Telin has been running, such as the Asia America Gateway (AAG), Southeast Asia Japan Cable System (SJC), Batam Singapore Cable System (BSCS) and Dumai Malaka Cable System (DMCS).

The submarine cable system will stretch 20,000 kilometers across Southeast Asia and the Middle East to France and Italy. Once completed, the cable system will interlink the 17 countries it passes through and will branch into Indonesia via two landing stations in Dumai and Medan.

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