Loan Aid Projects regarding Communication
  • Microwave Project Djawa-Bali, Stage Bandung-Surabaja (1968)
  • Microwave Project Djawa-Bali, Stage Surabaja-Denpasar and Surabaya (1969)
  • Consulting Project for Eastern Microwave (1970)
  • Consultant Services for Extension of Local Telephone Network Project/Extension Project of Local Telephone Networks (1970)
  • ARQ on HF Project (1970)
  • Development of Domestic and International Telex Services Project (1970)
  • HF Radio Circuits for Domestic Telecommunication in Sulawesi (1970)
  • Eastern Microwave System Project (1971)
  • Eastern Microwave System Project (1972)
  • Consultant Services on the Extension of Jakarta Cable Network Project /Extension Project of the Jakarta Telephone Cable Network (1972)
  • Consultant Services for the Long Distance Communication Project (1972)
  • Eastern Microwave System Project (1973)
  • Extension Project of the Jakarta Telephone Cable Network (1973)
  • Development and Improvement Project of the Local Cable Network (1973)
  • Installation Plan of Mobile Exchange in Jakarta Area (1973)
  • Installation Plan of Mobile Exchange in Jakarta Area (1974)
  • Equipment Supply for Java-Bali Microwave System Expansion (1978)
  • Equipment Supply for Extension of Junction Circuits in Jakarta (1980)
  • Equipment Supply for Remote Area Telecommunication Network (1981)
  • Equipment Supply for Remote Area Telecommunication Network (II) (1982)
  • Engineering Services for Sulawesi Microwave System Project (1983)
  • Extension of PCM Junction Network in Jakarta Area Project (II) (1984)
  • Surabaya-Banjarmasin Optical Fiber Submarine Cable Project (1986)
  • Telephone Outside Plant Maintenance Center Project (1990)
  • Junction Network for Expanded Jakarta Multi- Exchange Area Project (1991)
  • Regional Telecommunications Networks in Surabaya and Surrounding Areas Project (I) (1992)
  • Regional Telecommunications Networks in Surabaya and Surrounding Areas Project (II) (1993)
  • Extension and Improvement of Telecommunications Networks in Expanded Jakarta Areas (I) (1993)
  • Extension and Improvement of Telecommunications Networks in Expanded Jakarta Areas (II) (1994)
  • Telephone Outside Plant Maintenance Center (OPMC) Phase II Project (1994)

Period: Loan Aid Projects (Implemented 30 times from January 1969 to November 1994 (the time of contracts))

Place: All the islands and territories of Indonesia including the Jakarta (Nationwide)

Amount Provided: Total 83,405 billion yen
      (source: Website of Japan Bank for International Cooperation)

Purpose:
Indonesia is a vast country made up of many islands with its population divided into various ethnic groups having different languages, cultures and religions. This loan aid project is to spread and increase telephone lines throughout the country, to provide a stable telephone service while designing a maintenance system, which is vital for such a diversified country, and to unify it as a nation, develop and sustain socio-economic activities.

Outline:
The telephone service in Indonesia is provided by a government owned telecommunication company called PERUMTEL.

At the time when the first five-year national development plan started in the fiscal year 1969, Indonesia was entering the period of stable growth both politically and economically. As communication became vital for its economy to develop, the Japanese government provided loan aid as part of economic cooperation to help Indonesia spread communication links within the vast country that is made up of many islands by using various means such as short wave networks, microwave networks, submarine cable networks and so forth

Despite this effort, the telephone penetration rate in Indonesia was 0.47 sets per 100 people in December 1988, way behind other countries in ASEAN. More than 40 percent of the telephone subscribers at that time was concentrated in Jakarta and the major factor behind the low penetration rate was, in particular, the late construction of cable networks for telephone subscribers. Because of that, in the 5th five year plan for telecommunication development(drawn up in 1989), the expansion and stabilization of telephone networks and stabilization of service quality became the main target. Improving the maintenance system of the cable networks of subscribers was urgent and to that end Japan cooperated in building telephone outside plant maintenance centers throughout the country.

Furthermore, in 1989, as economic and social activities were continuing to expand and develop into areas surrounding Jakarta special district under the regional development policy of the Indonesian government, communication demand in the metropolitan area of Jakarta (in the radius of 30km from the central district) was expected to grow significantly. But because the transmission networks in the metropolitan were not made in consideration of these growth factors, assistance were provided with the purpose of improving the communication situation between Jakarta special district and surrounding areas、the rate of completion of a telephone call, and to contribute to the expansion and development of the economic activities of the said area.

In addition, there was also the objective of promoting investment in the industries in metropolitan Surabaya, a center of commerce and industry which consists of areas including Surabaya, the second largest city of Indonesia and six provinces around and one city. It was also urgent to expand the infrastructure to support above mentioned activities.

The improvement of communication networks which is one of the most important infrastructures was very much late behind compared to the metropolitan area of Jakarta at that time, becoming a bottleneck in the aspect of regional development and negative factor for companies considering advancing into the city area.

For that reason, Japan assisted in the improvement and expansion of communication networks as a means of regional development in Surabaya and to fill the gap with the communication capabilities in with Jakarta.

Equipment maintenance center outside a telephone office built with Japanese assistance The exterior view of an equipment maintenance facility outside a telephone office
Automatic switching procured by Japanese assistance (Jakarta) Central monitoring system of transmission lines (Jakarta)
Optical transmission lines procured by Japanese assistance (Surabaya)