“Palapa Ring” project is the development of backbone network project designed and implemented using submarine fiber-optic cable system to cover 57 city/district where some are still underserved. The procurement of were divided into 3 (three) main packages; the Western, Central, and Eastern with an estimated range of coverage along 8479 km. The project is targeted to distribute broadband services to end users with a transfer speed of at least 10 Mbps in rural areas and 20 MBps in urban areas. 

Palapa Ring is the first Public Private Partnership project in telecommunication sector using Availability Payment (AP) schemes. The AP scheme was initiated by the Ministry of Finance with the source of fund is derived from the Universal Service Obligation (USO).

On 4 March 2016, The Minister of Communication and Informatics as the Contracting Agency has signed the cooperation agreement with  PT Len Telekomunikasi Indonesia for The “Central Package” of The Palapa Ring Project worth IDR 1.38 trillion. This project is one of National Strategic Infrastructure Projects as stated in Presidential Decree No. 3 of 2013, which also categorized as National Priority Project.  On the same occassion, Indonesia Infrastructure Guarantee Fund (IIGF) as a single window providing guarantees for Public Private Partnership (PPP) infrastructure projects also signed the Guarantee Agreement and Recourse Agreement for Palapa Ring project.