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atellite communication provider PT Pasifik Satelit Nusantara (PSN) has finalized a financing agreement worth US$154 million from Canadian lender Export Development Canada (EDC) for the construction of new satellite called PSN VI.

The satellite project, which cost $230 million, is a response to the rising demand of broadband data access in Indonesia.

“Right now even villages and SMEs [small and medium enterprises] in remote area need access to internet.” said PSN president director Adi Rahman Adiwoso said late on Tuesday.

“PSN VI is an important infrastructure to fulfill our needs for data connection in Indonesia, which is a archipelagic country. So satellite is the most efficient way to reach the unreachable,” Adi said.

For 26 years, the company has been the leading private company that offers internet through satellite. As a private player in the satellite business, PSN managed to gain $32 million revenue in 2016, which grew double digit from the previous year. The company expects the revenue will increase to $40 million when PSN VI starts operation in the fourth quarter of 2018.

Aside from PSN VI, the company is also building two other satellites; Palapa-N1 with telecommunication company PT. Indosat, and PSN VII. The two satellites will start operations in 2020 and 2022, respectively.

If all the satellites are in operations, the company will have the capacity to provide 130 Gbps (gigabits per second) capacity, positioning it as the biggest satellite broadband internet provider in Indonesia.

Adi said that currently Indonesia only had 150 transponders where one transponder was equivalent to 100 Mbps (Megabits per second) while demand was twice the number.

“So if at this exact moment Palapa N-1 and PSN VI start operations, Indonesia’s supply and demand for transponder will almost balance.” said Adi, adding that by 2020 the demand for broadband internet will be at 160 Gbps.

The PSN VI is being built by United States satellite maker Space System Loral, and will be launched from Cape Canaveral in Florida, US.

Adi said that Indonesia’s providers have rented foreign-owned satellites, but there were entailed risks such as operational assurance when the satellite-host country is in dispute with Indonesia.

“Right now we rent satellites from China, Japan, and also Laos. The rent is of course more expensive than owning one,” he said.

Communications and Information Minister Rudiantara said that there are 140.000 locations in Indonesia that still need to be connected. “That’s why we are happy and supportive when private entities want to step in.” he said. (srs)