It was built by Hughes Space and Communications Company (now Boeing Satellite Development Center) for Indonesian telecommunications provider PT Satelit Palapa Indonesia (SATELINDO).

PT Satelit Palapa Indonesia (SATELINDO) chose Hughes in April 1993, together with identical sister satellite, the Palapa-C1.

Hughes also set up the new master control station at Daan Mogot City near Jakarta.

[2] PT Indosat Tbk selected in May 2013 Orbital Sciences Corporation (OSC) (now Northrop Grumman) to build and launch the Palapa-E satellite.

Indosat cancelled contract to build Palapa-E after losing the operating rights to the 150.5° East orbital position to state-owned Bank Rakyat Indonesia (BRI).