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JAKARTA (TheInsiderStories) – Indonesian government has won PT Pasifik Satelit Nusantara (PSN) consortium as the winner of the Government Multifunctional Satellite auction with worth of US$1.5 billion. The Public-Private Partnership projects targeted to launch in 2022.

In an official statement released last week, chairperson of the auction committee at the Information, Communication and Technology (ICT) ministry Sri Sanggrama Aradea, stated that the PSN consortium would carry out the project for 15 years from the date of commercial operation, not including Frequency Use Right and Value-Added Tax.

This Satria Multifunction Satellite will be a mainstay for areas that are difficult to reach by fiber optic cable to connect to the fast internet. The consideration of using this multifunctional satellite is for cost efficiency and broad coverage.

According to the Telecommunications and Information Accessibility Agency, the government currently has conventional satellites and must spend up to Rp18 million (US$1,285.71) for every megabit per second (Mbps). Meanwhile, with multifunctional satellites the number could drop to Rp6 million per Mbps.

Aradea explained that the PSN consortium in the project known as the High Throughput Satellite (HTS) satellite or SATRIA satellite consisted of PT Pintar Nusantara Sejahtera, PT Pasifik Satelit Nusantara, PT Dian Semesta Sentosa, and PT Nusatara Satelit Sejahtera.

Furthermore, he said, the auction participants who objected to the announcement of the auction results could submit a written objection to the Minister of ICT starting April 22 until 26, 2019.

As known, multifunctional satellite or HTS will serve 149,400 service locations consisting of around 93,900 schools, 47,900 government offices, 3,900 police/army offices, and 3,700 health centers with internet access speeds of 30 Mbps.

Its expected the capacity of this satellite is 150 Gbps for all of Indonesia. This multifunctional satellite project was stated to have a capital expenditure value of Rp6.7 trillion with a total operating expense of Rp1.6 trillion.

As the winner, the PSN Consortium succeeded in setting aside the Djarum Consortium which consisted of Societe Europeenne des Satellites (SES), a satellite company from Luxembourg and a subsidiary of PT Sarana Menara Nusantara Tbk (TOWR) iForte.

This project has been started since 2017 by the Investment Coordinating Board and the ICT ministry conducting project pre-market sounding activities cooperation between the government and multifunctional satellite business entities.

With this cooperation, the ministry plans to procure government multifunctional satellites with the latest technology, namely high throughput satellite through the Telecommunications and Informatics Financing Provider and Management Center with an investment of Rp7.7 trillion with a 15-year concession period.

PSN is the first satellite-based private telecommunications company in Indonesia and established in 1991 triggered by two satellite experts namely Adi Rahman Adiwoso and Iskandar Alisjahbana.
PSN has also collaborated with two partners from the Philippines and Thailand to form a company that provides satellite-based mobile telephone services in the Asia-Pacific.

PSN has become one of the satellite-based internet providers in Indonesia. In 2017, PSN has launched a new product in the form of high-speed broadband internet via satellite at an affordable price that is able to reach areas throughout Indonesia that are not covered by terrestrial networks, with the hope that the internet can be enjoyed anywhere in the country.

Written by Daniel Deha, Email: daniel@theinsiderstories.com

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