Indonesia Offers US$421M’s Multifunction Satellite Project

Deputy of Investment Planning of BKPM Tamba Hutapea (second from right) after delivering the exposure in Market Sounding II Project of Government Multifunction Satellite Project at BKPM office, Jakarta on Wednesday (06/06) - Photo by BKPM

JAKARTA (TheInsiderStories) – Indonesia Investment Coordinating Board in cooperation with Ministry of Communication and Informatics offers Government Multifunction Satellite Project worth Rp5.86 trillion (US$421.58 million), said one official on Wednesday (06/06).

The market Sounding activity was attended by 200 investors who
interested and engaged in the company’s VSAT company satellite operator, operator telecommunications, financial institutions, and Indonesian trading partners.

Deputy of Investment Planning of the agency, Tamba Parulian Hutapea in
his speech conveyed that market sounding activity delivered the full profile of the project, as well as for get feedback on the cooperation scheme to be offered by Telecommunication Accessibility Agency and Informatics to potential investors.

“After getting general information on the project presentation sessions, the participants who interested can do more technical discussion with representatives of the body as the project manager, accompanied by PT Sarana Multi Infrastruktur, and project consultant representative (Deloitte, ANG Law, Tritech, and Argosat),” he said.

The Indonesian government has made progress with its plan to send up a multi-function satellite, worth Rp7.7 trillion, with the aim of upgrading connectivity across the archipelago, in particular for areas not to be covered by the Palapa Ring broadband project.

The multi-function satellite is expected to provide fast internet access to remote areas in Indonesia which can be accessed by various government sectors, such as maritime, education, health, agriculture, communication and others.

Minister for Communication and Informatics Rudiantara has said the multi-function satellite is intended to complement the Palapa Ring broadband project being developed by the government, in cooperation with the private sector. The limitation of the Palapa Ring fiber-optic project is that it cannot cover a number of remote areas across the archipelago.

The Palapa Ring project is part of the government’s strategic initiative, called ‘Indonesia Broadband Plan’, which aims to connect 71 percent of urban Indonesians to the internet by 2019, along with 49 per cent in rural areas. Areas beyond the reach of the Palapa Ring will be covered by the multi-function satellite.

Palapa Ring will provide fast broadband internet to the entire archipelago through an 11,000 kilometer-long undersea fiber-optic cable network, according to government estimates.

The Palapa Ring project will deploy 2,000-km of fiber-optic cable in the western part of the archipelago, 2,700-km fiber-optic in its central part and around 6,300-km of fiber-optic in eastern Indonesia with High Throughput Satellite technology, procurement of Multifunctional Satellite.

The government will provide 150 Gbps broadband connection to meet the needs of government service points throughout Indonesia. The ministry has identified 145,500 service needs from service points for broadband connections in the education, health, and local government.

Hutapea said, some of the companies that were present and interested were Airbus Company, The Boeing Company, Lockheed Martin, SpaceX, Eutelsat Asia, SKY Perfect JSAT Corporation, Measat Satellite Systems, Gilat Satellite Network (Holland B.V), PT Palapa Satellite Nusa Sejahtera, Telesat Canada, PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT INTI, PT Iforte Infotek Solutions, Mitsubishi Corporation, PT Indosat Ooreedoo Tbk (IDX: ISAT, PT Damai Persada Investama, PT Indo Pratama Teleglobal, PT. Bank Rakyat Indonesia Tbk (IDX: BBRI), MUFG Bank, and SMBC Indonesia.

The Prequalification stages, auction, until the signing of the planned cooperation contract will begin on end of June 2018 until the end of December 2018. The time from the tender to the launch of the satellite is estimated three to four years.He added, the scheme return on investment comes from service availability payment for 15 years.

The National Strategic Project stated in Presidential Regulation Number 58 Year 2017. Under the regulation, the Minister of Communication and Information has a mandate to accelerate preparation the Government Multifunction Satellite Project which is planned to be implemented through the scheme of Government and Business Entity Cooperation.

US$1: Rp13,900