We are delighted to announce a significant milestone in the Government Multifunction Satellite (Satelit Republik Indonesia / "SATRIA-1") PPP Project. SATRIA-1, the largest satellite in Asia and the fifth largest in the world, has officially entered its Commercial Operation Phase. This groundbreaking telecommunication satellite's remarkable journey encompasses the entire lifecycle, from design, financing, and construction to launch and the ongoing operation of a 150 Gigabytes-per-second (Gbps) Very High Throughput Satellite (VHTS) along with its essential ground infrastructure. As it prepares for full-scale operation, SATRIA-1 is set to cover approximately 37,000 public service points across Indonesia.
With a financial package of US$550 million, the project financing blends debt and equity, backed by international commercial and multilateral development banks, along with the support of export credit agency guarantees. This project is not only the first of its kind to be successfully procured and closed on a PPP basis in Indonesia but also stands out as one of the few globally.
At AHRP, under the leadership of our Partner Irawady Azwar and Senior Associate Yohanes Partogi, our team has been pivotal in steering this project through its various stages – from initial preparations and transactions to the critical phase of achieving financial close, and now to the commencement of the Commercial Operation phase. Our role as legal counsel in supporting the Indonesian Ministry of Communication and Information Technology has been integral in reaching these key milestones.
We firmly believe in the transformative potential of this project for our nation, particularly in narrowing the digital divide by enabling internet access in Indonesia's underdeveloped, frontmost, and outermost (3T) regions. This accomplishment stands as a testament to Indonesia's dedication to technological progress and inclusive connectivity.
We extend our heartfelt congratulations to all the stakeholders involved, and we eagerly anticipate witnessing the profound and far-reaching positive impact of SATRIA-1 on Indonesia's connectivity landscape.