The government is committed to continuously improving internet penetration evenly across all regions of Indonesia. This is because advancements in information technology impact the equity and improvement of productivity. According to 2008 World Bank research, a 10 percent increase in broadband penetration will increase GDP by 1.38 percent in developing countries.
Kominfo data in the Achievements of the Three Years of the Joko Widodo-Jusuf Kalla Administration notes that the Palapa Ring project's Western package has reached 74 percent of its 2,275 km network length. The Central package has reached 35 percent of its 2,995 km network length, while the Eastern package has only reached 18 percent of its total 6,878 km. The government targets the Palapa Ring's Western and Central packages to be operational in 2018, and the Eastern package in 2019.
Funding for the Palapa Ring project utilizes an availability payment (AP) scheme with a 15-year project contract. The Western package is estimated to require Rp 3.48 trillion, the Central package Rp 3.5 trillion, and the Eastern package Rp 14.06 trillion.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy,
but please note that automated translations may contain errors or slight inconsistencies."