Cases & Deals

Ministry of Communications and Information Technology (Indonesia) procures Government Multifunction Satellite Public Private Partnership project

Clients Ministry of Communications and Information Technology (Indonesia)

Jones Day represented the Ministry of Communications and Information Technology (Indonesia) (MCIT), as international counsel, in connection with its procurement of a Government Multifunction Satellite Public Private Partnership (PPP) Project. The project involved the design, finance, build, launch, and long term operation of a 150 Gigabytes per second (Gbps) Very High Throughput Satellite (VHTS), for Indonesian Government usage, together with an associated network of ground stations and control centers. After satellite launch, the coverage of the project will reach 150,000 public service points, providing high speed internet services to a host of governmental facilities, consisting of over 90,000 schools and education facilities, community health facilities, defense and security administration, and other national and local government organizations across the Indonesian archipelago.

The project represented the first satellite project procured on a PPP (3P) basis in Asia and one of the few satellite projects procured on a PPP basis globally. The project has an initial capex of approximately $350 million and whole life costs over a 15 year operational term in excess of $1 billion.

Jones Day represented MCIT as the government contracting agency and procurer of the project, throughout the tender stage, which involved bidding by a number of international and local satellite operating consortiums who had been pre-qualified to participate in the bidding for the project. The Firm's role extended from the negotiations and shortlisting of bidding consortiums during 2018, through to final bid submission, winning bidder selection, and final execution of the suite of PPP project documents.

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