Indonesia: Multifunctional Satellite PPP Project (AIIB-000291)

Countries
  • Indonesia
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 1, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Adi Rahman Adiwoso, Chief Executive Officer
The holder of the loan, grant, or other investment.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jun 29, 2020


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Project Description

According to the bank document, " Indonesia’s Ministry of Communication and Informatics (“KOMINFO”) initiated the Government of Indonesia Multifunctional Satellite PPP Project to provide fast internet access to remote areas in Indonesia which can be accessed by various government sectors, such as maritime, education, health, agriculture, communication and others. Satellite-based connectivity is the only feasible access technology to cost-effectively address these remote locations. This is the first telecommunication satellite PPP (Public-Private Partnership) Project in Indonesia. 

The main responsibilities of the Project Sponsor under the concession agreement include:

* Securing the satellite orbit.

* Constructing the satellite.

* Constructing the launch rocket.

* Acquiring the gateway location.

* Acquiring the earth station location.

* Launching the satellite.

* Construction of the gateway and earth stations.

* Obtaining insurances for the Project.

* Operation and maintenance of the satellite, gateway, and earth stations.

The objective is to improve connectivity to public service points in the least developed, frontier, and outermost regions of Indonesia."

 

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)
Private Actors

AIIB is considering financing to a Special Purpose Vehicle Company, PT Satelit Nusantara Tiga ("PSNT") comprised of PT Pasifik Satelit Nusantara ("PSN"), PT Pintar Nusantara Sejahtera ("Pintar"), PT Nusantara Satelit Sejahtera ("NSS") and PT Dian Semesta Sentosa ("DSMT").

Contact Information

1/ Project Team Leader

Asim Rana

Principal Investment Officer, Digital Infrastructure and Industry

Asim.rana@aiib.org

2/ Borrower

Adi Rahman Adiwoso

Chief Executive Officer

adiwoso@psn.co.id

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM).  The PPM provides “an opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIB’s failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.” Two or more project-affected people can file a complaint.  Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply.  You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html.

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html.