Ministry of Communications and Information Technology (Indonesia) achieves final close of procurement of US$550 million Government Multifunction Satellite Public Private Partnership project

Client(s) Ministry of Communications and Information Technology (Indonesia)

Jones Day advised the Ministry of Communications and Information Technology (Indonesia) on the initial tender and procurement, and subsequently the successful financial closing, of a US$550 million Government Multifunction Satellite Public Private Partnership (PPP) Project. The Project represents the first satellite project successfully procured and closed on a PPP basis in Indonesia and one of the few globally. The Project includes the design, finance, build, launch, and long term operation of a 150 Gbps capacity, high throughput satellite, for Indonesian Government usage, together with an associated network of ground stations and control centers. Upon completion and successful launch, the Project aims to provide 145,000 new connections across the Indonesian archipelago including approximately 90,000 schools, 40,000 hospitals and government buildings and other government sites not linked to existing satellite or terrestrial infrastructure. The financing for the Project is being provided by a mix of debt and equity. The debt is financed by international commercial and multilateral development banks and included export credit agency guarantee support.