Indosat linked with new satellite project, paper says

10 Mar 2015

According to an unconfirmed report in the Indonesian Investor Daily, the country’s third largest telco Indosat is considering plans to build a new satellite via a USD200 million investment. The paper cites Indosat chief executive officer Alexander Rusli as saying that the new orbiter is intended to replace the firm’s Palapa D satellite, whose orbit is set to expire in 2020.

TeleGeography notes that in January Indosat revealed plans to issue bonds worth up to IDR2.50 trillion (USD197.5 million), either in the second or third quarter of this year, to refinance bonds worth USD650 million that are due in 2020. Further, in December 2014 the carrier said it was looking to issue conventional and Islamic bonds on the local market, to refinance debt and pay for its 4G mobile licence. In a filing to the Indonesia Stock Exchange (IDX) at the time, Indosat said IDR2.31 trillion of the total would be in conventional bonds, and the remainder in Islamic bonds. ‘From the total raised fund from the bond issuance, 78% will be used to refinance part of our debts, while the remaining 22% will be used to obtain [a] network licence,’ Rusli said at the time. The carrier’s new licence is valid for ten years with payment being made annually, he added in a statement. The 4G concession, which is due to be handed over by the Communication and Information Ministry, will allow Indosat to use radio frequencies of 800MHz, 900MHz and 1800MHz.