Satellite Company Avanti Demands USD17mn Compensation from Govt

TEMPO.CO, Jakarta - British satellite company, Avanti Communications Group has filed an appeal against the Indonesian Government for allegations of contractual misdeeds on the Artemis satellite that is positioned above the equator.

The company demanded US$17.08 million (Rp237.5 billion) compensation from Indonesian government, which was filed to the London International Court of Arbitration on August 2017.

According to Sigit Priyono, the Coordinating Ministry of Political, Legal, and Security affairs assistant deputy coordinator of telecommunication and informatics, the Avanti rent payment was postponed because of budget administration issues.

“The budget allocated to pay the rent was not able to be liquidated because of several problems,” said Sigit yesterday.

This problem arose after Indonesia’s Garuda-1 satellite shifted positions three years ago from its initial orbit of 123 degree East Longitude above the equator, which is a strategic slot since satellites can move in a vast reach of space.

It was also the reason President Joko Widodo (Jokowi) ordered the Defense Ministry and the Communications and Informatics Ministry to secure the spot, which was then followed up by the defense Ministry through renting the Artemis Satellite owned by Avanti for US$30 million (Rp405 billion) to fill-in the 123 degree East Longitude spot.

According to a Ministry Official, the first payment was completed by the Defense Ministry back in 2016, however in 2017 the payments stopped after the Development Finance Comptroller (BPKP) assessed that the study for the project’s worthiness was not up to par.

“The Finance Ministry was not able to grant the payment for the following rent due,” said Sigit Priyono.

DANANG FIRMANTO | INDRI MAULIDAR | EFRI R