JAKARTA, December 5, 2017 – PT Pasifik Satelit Nusantara (PSN), the first private company in the satellite-based telecommunications and information services sector in Indonesia, has again taken corporate action by building a new satellite to be named PSN VI. This new satellite will be operated and managed by PSN’s subsidiary, PT PSN Enam Indonesia and supported by financing from Export Development Canada (EDC), Canada’s export credit agency. The PSN VI satellite was built by Space System/Loral, a leading satellite manufacturer from the United States and is targeted to orbit at the end of 2018 in the 1460BT orbit slot managed by PSN. The signing ceremony for the financing cooperation between PT PSN Enam Indonesia and EDC was held today at the Grand Hyatt Hotel, Jakarta by Nedy Zachry, Director of PT PSN Enam Indonesia with Tushar Handiekar, Director, Infrastructure & Industrials, Structured & Project Finance Export Development Canada (EDC) witnessed by Adi Rahman Adiwoso, CEO of PT. Pasifik Satelit Nusantara. The event was also attended by the Minister of Communication and Information, Rudiantara, the Board of Directors of PSN and its subsidiaries, and management from EDC, Canada. The financing agreement with EDC was signed on October 25, 2017 in Jakarta and Ottawa, Canada.
PSN Chief Executive Officer Adi Rahman Adiwoso said that the construction of the PSN VI satellite will strengthen the company’s position as the largest broadband service provider in Indonesia. This strategic step is also part of PSN’s commitment to support the Indonesian satellite independence program initiated by the Indonesian Government and to optimize the opportunities for domestic satellite companies to meet the very high demand for broadband data in Indonesia.
“As a pioneer satellite company in Indonesia, PSN continues to strive to meet the increasing need for satellite services by adding new satellites with more sophisticated technology so that communication services, both data and voice, can be enjoyed by more Indonesian people. We hope that PSN satellite services can reach all regions of Indonesia and help drive the national economy,” said Adi Rahman in Jakarta, Tuesday (5/12).
PSN VI has a C Band and Ku Band transponder capacity that can reach all corners of Indonesia. The C band transponder is planned to be used to serve the cellular trunking and data communication needs of companies and government institutions throughout Indonesia.
The Ku Band transponder is intended to serve the needs of high-speed internet via satellite. PSN VI will have the capability as the first High Throughput Satellite (HTS) in Indonesia that can provide broadband internet services with a much larger capacity compared to conventional satellites for the same spectrum allocation.
To increase its service capacity and provide cost-effective services for its customers, PSN consistently continues to build satellites with advanced technologies. PSN with the support of PT Pintar Nusantara Sejahtera, which is the main shareholder of PSN, and other strategic partners, is also building the Palapa-N1 Satellite which is planned to operate in 2020. PSN is also designing the PSN VII satellite which is targeted to serve consumers starting in 2022. With the operation of all these satellites, the PSN Group will become the largest satellite broadband service provider in Indonesia with a capacity of 130 Gbps.
Adi Rahman explained that changes in lifestyle and increasing economic activities of the community will drive the need for data through broadband satellite access in Indonesia which will reach 160 Gbps in 2020. Therefore, through the construction and operation of new satellites, PSN hopes to support national strategic projects to eliminate the digital gap and meet the need for broadband internet access.
“The PSN VI satellite is an important infrastructure to meet the need for communication networks in the form of data in Indonesia as an archipelagic country. Satellites are one of the efficient mediums to reach areas that are difficult and cannot be served by terrestrial infrastructure networks such as using fiber optic and microwave links,” explained Adi Rahman.
The increasing number of the middle class and the increasing purchasing power of the Indonesian people have driven internet usage to increase. According to the market research institute e-Marketer, the population of internet users in Indonesia has jumped from 83.7 million people in 2014 to around IDR 112 million in 2017. The large number of internet users has driven the e-commerce sector in Indonesia to grow rapidly. In 2020, the Ministry of Communication and Information estimates that the potential for money turnover from the e-commerce sector will be US$ 130 billion or around Rp. 1,775 trillion.
According to Adi Rahman, the internet has brought changes and new opportunities to the lives of Indonesian people. The development and operation of satellites carried out by PSN are expected to create an economic multiplier effect throughout Indonesia.
“Satellites are more efficient communication and telecommunications infrastructure with wide coverage. These various advantages can be optimized by the Indonesian people to build a better civilization and life,” he said.
Bill Brown, EDC Regional VP said, “EDC continues to provide financial solutions to strengthen the increasingly close relationship between Canada’s leading technology companies and buyers from Southeast Asia. This PSN transaction is a fitting example of how financing from EDC can help create positive outcomes for all parties, and we hope to be able to do more deals like this in Indonesia,”
Minister of Communication and Information Rudiantara expressed his appreciation and support for the cooperation agreement made by PSN with EDC. “The government greatly appreciates the active involvement of business actors and the initiatives carried out by PSN can realize the government’s ideals to connect all regions of Indonesia to the internet, so that economic activities become more efficient,” said Rudiantara.
