AIIB provides US$ 150 million loan for SATRIA Satellite PPP in Indonesia

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AIIB provides US$ 150 million loan for SATRIA Satellite PPP in Indonesia

The Asian Infrastructure Investment Bank (AIIB) has approved a US$ 150-million nonsovereign loan to Satelit Nusantara Tiga (SNT) for a multi-functional satellite PPP that will cover 45 million people.

The SATRIA Satellite PPP involves the financing, design, procurement, construction, launch, operation, and maintenance of a multifunctional government satellite named SATRIA. 

With its population of 265 million people, Indonesia is the world’s fourth most populous country. Currently, more than 10,500 villages still do not have cellular network coverage, and fiber optic cables primarily serve only urban areas. The satellite will provide much-needed broadband internet service to more than 149,400 unserved public service points consisting of around 93,900 schools, 47,900 government offices, 3,900 police/army offices, and 3,700 health centers with internet access speeds of 30 Mbps at locations in some of the least developed regions of Indonesia.

Initiated by Indonesia’s Ministry of Communication and Informatics, the project is one of the top priorities of the government and aims to provide broadband internet via satellite to government institutions at the fastest speed and at the cheapest price to close the digital divide in the country. 

SNT President Director Adi Rahman Adiwoso said “We at SNT are delighted to have approval from AIIB’s Board of Directors for the financing of the project of the Government of Indonesia. The US$ 150-million long-term financing provided by AIIB is a key part of the fully syndicated financing package of US$ 435 million. We hope to have approval from the French Export Credit Agency, Bpifrance, and Korea Development Bank to provide the balance of the syndicated financing”.

This will be the first satellite PPP project to be supported by AIIB and will be cofinanced in conjunction with HSBC, Santander, and Korea Development Bank. Bpifrance is acting as the export credit agency for the debt provided by HSBC and Santander, and for part of the debt provided by Korea Development Bank.

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