The Palapa Ring project is one of the backbone network development projects designed and implemented using the Marine Cable Communication System and Fiber Optic Communication System to 57 underserved cities / districts. The Palapa Ring project was developed by the Ministry of Communications and Informatics with underwriting support by IIGF. Business enterprise procurement process is divided into three packages, namely, West Package, Central Package and East Package with an estimated coverage area of 8,479 km. The project is targeted to be able to distribute broadband networks at 10 Mbps in rural areas and 20 Mbps in urban areas.

The Palapa Ring project is the first PPP Scheme project in the telecommunications sector by applying the Availability Payment (AP) scheme. The availability payment scheme is initiated by the Ministry of Finance whose source of funding comes from the Universal Service Obligation Contribution Fund (USO).

On 29 September 2016 at State Palace, witnessed by the President of Republic of Indonesia Mr. Jokowi, Coordinating Minister for Economic Affairs Mr. Darmin Nasution, Kemenko Polhukam Mr. Wiranto, the signing of Guarantee Agreement between IIGF and PT Palapa Timur Telematika as Executing Enterprise and Recourse Agreement between IIGF with Ministry of Communications and Informatics as Contracting Agency. At the same time, the Financial Close Project of Palapa Ring Central Package was also held. President of Indonesia Mr. Jokowi hopes the Palapa Ring project will be completed in 2019. This project is a National Strategic Infrastructure project as stated in Presidential Regulation (Perpres) no. 3 of 2016, which is also categorized as National Priority Project.