business

DNeX consortium inks installation, maintenance deal for submarine cables in Indonesia

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX), through a consortium formed between business unit PT DNeX Telco Indonesia (PT DTI) and PT Samudera Mbiantu Sesami (PT SMS), has signed an agreement with PT Infrastruktur Telekomunikasi Indonesia (TelkomInfra) to supply installation and maintenance support services of submarine cables in Indonesia.

Under the agreement, DNeX-led consortium will provide the services to TelkomInfra for a duration of three years with an option to extend for a further three years.

"TelkomInfra will pay a standby charge of 213 billion rupiah (RM63 million) over the initial three-year period, excluding daily rates applicable depending on the work scope.

"With an assumption of 65 per cent vessel utilisation rate in a year, estimated total revenue per year including standby charge is about 215 billion rupiah (RM62 million)," it said.

DNeX group managing director Datuk Sri Syed Zainal Abidin Syed Mohamed Tahir said the agreement marks a significant milestone for DNeX's submarine cable business and is expected to accelerate the segment's growth and contribution to the company's revenue moving forward.

He said the new contract can help propel the company to become a leading regional player in submarine cable laying, maintenance and repair works.

"In the Asia Pacific region, Indonesia has one of the largest populations of about 270 million people and one of the world's fastest growing population of smartphone users, which can translate to growing demand for higher speed of data connectivity.

"Furthermore, international technology giants Facebook and Google have recently announced major investments into Indonesia, which include the construction of two new subsea cables connecting Indonesia and the United States.

"These major infrastructure developments present new and attractive market opportunities for our submarine cable business," he said.

The consortium agreement was signed by PT DTI, PT SMS and TelkomInfra on January 25, 2021.

Based on the terms of the agreement, the consortium is established for a period of three years and may be extended over the next three years.

DNeX currently provides end-to-end subsea and marine engineering services for all types of submarine cables through its submarine cable laying and repair asset CS DNeX Pacific Link.

The vessel is equipped with effective and stable dynamic positioning capability, classified as DP2, to ensure the accuracy of the vessel's position.

With an accommodation capacity of 58 people, a service speed of nine knots and an endurance of 50 days, the vessel is rightly able to carry out cable laying as well as repair and maintenance of submarine cables.

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