Indosat and New Satellite

PT Indosat Tbk (ISAT), one of the largest telecomunication companies in Indonesia, established a new company namely PT Palapa Satelit Nusa Sejahtera (PSNS) according to Indonesia Stock Exchange (IDX) announcement that released today. This Company is a joint venture company with PT Pasifik Satelit Nusantara (PSN) and PT Pintar Nusantara. Indosat hold 35%, while PT Pintar Nusantara hold 55% and PSN hold 10%.

Today PSNS signed a satellite purchase agreement with China Great Wall Industry Corporation (CGWIC), a Chinese satellite producer. The signing of a purchase contract worth approximately US$ 220 million.

According to www.gbtimes.com, CGWIC to construct the Palapa-N1 telecommunications satellite for Indonesia, with launch to follow in 2020. Palapa-N1 will be a high-throughput satellite (HTS) based on the Dongfanghong-4E satellite bus and launched by a Long March 3B rocket from the Xichang Satellite Launch Centre in China's Sichuan province. 

According to the contract, CGWIC will provide the clients with the satellite, launch services, ground systems, insurance and finance support. The Ku band HTS satellite will be used to provide broadband services to Indonesia.

The satellite will be manufactured by the China Academy of Space Technology (CAST), a subsidiary of the China Aerospace Science and Technology corporation (CASC), the main contractor for the Chinese space programme. Palapa-N1 will be placed at 113 degrees East in geostationary orbit, around 36,000 kilometres above the Earth, and will replace the Palapa-D satellite.

According to http://www.indotelko.com, the cooperation between Indosat and PSN is not the first time. In 1997, Indosat controlled about 26.67% stake in PSN subsidiary, PT Multi-Media Asia, Indonesia. The value of shares is equivalent to US$ 20 million at that time.

The news circulated that the cooperation between Indosat and PSN can not be separated from the role of Sinar Mas Group. Reportedly, the Sinar Mas Group has controlled part of PSN shares through PT Pintar Nusantara Sejahtera (PNS). PNS are controlled 100% by the Sinar Mas Group.