Telkom, Indonesia's domestic phone monopoly, will seek government approval for the US$2 billion cable to land in Anyer--an hour's drive west of capital Jakarta. Bloomberg first reported a month ago that both companies were in talks for the submarine cable, with Medan as a landing point as well.
The move will allow SingTel and its partners for the cable to tap a growing market as the fourth-most populous country climbs out of its worst economic slowdown in decades. Indonesia's also opening its phone market to competition.
"We are convinced that this huge domestic market presents great potential for growth in Indonesia's telecommunications sector, which will lead to strong demand for bandwidth," Lim Shyong, executive vice president of global business at SingTel, said in a statement.
SingTel's partners for the cable, called C2C Pte Ltd, include Japan's KDD Corp and Globe Telecom Inc in the Philippines. The 17,000-kilometer network will link seven Asian markets from Japan, Hong Kong to Singapore.
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