Indonesia Offers Rp7.7t Satellite Project to Investors – BKPM

The investment scheme for the 15 year concession is based on an availability payment with a government guarantee, according to the BPKM press statement.

The investment Coordinating Board (BKPM) in collaboration with the Communications and Information Ministry has held a premarket sounding event for a public private partnership (PPP) project on the procurement of a multifunctional satellite, an official has said.

“The premarket sounding event is not only to inform potential investors about the project, but also to obtain feedback about the investment model,” said BKPM investment plan deputy head Tamba Parulian Hutapea in a statement issued on Wednesday.

A high throughput satellite is to be procured by the Telecommunications and Informatics Funding Provision Management Agency (BP3TI).

The investment scheme for the 15 year concession is based on an availability payment with a government guarantee, according to the BPKM press statement.

It said the board had invited more than 100 participants, consisting of VSAT firms, satellite makers, telecommunications operators, financial firms and consultants.

The government needs to procure the satellite to fulfill its universal service obligation, particularly for the areas that are not served by terrestrial broadband, Tamba said.

BP3TI has identified 149,000 locations of service demand for broadband connections that could be served by the new satellite. They include education facilities, healthcare centers, police offices, defense and security buildings and other government bodies.

Among the companies that attended the premarket sounding and expressed their interests to the project included Arianespace, Aerospace Industrial Development Taiwan, Aerospace Long-March International Trade Co. Ltd, Thales Indonesia, Anhui Sun Create Electronics Co., Ltd, PT Selindo Alpha, PT Iroda Mitra, PT Pasifik Satelit Nusantara, SES Network, PT Damai Persada Investama, China Telecom, PT Telekomunikasi Indonesia, PT Indosat, Telkomtelstra, Deloitte, PwC, Bank of China, Credit Agricole CIB, Citibank, China Export and Credit Insurance Corporation (Sinosure). (bbn, The Jakarta Post)