PT Jasindo agrees to compensate Satelindo

PT Jasindo agrees to compensate Satelindo

JAKARTA (JP): PT Jasindo, the state company which insured
Indonesia's Palapa-C1 communication satellite, says it is
prepared to pay out PT Satelindo, the owner, due to the
malfunctioning of four transponders in the satellite.

Jasindo stated that it was formally informed on Feb. 23 of an
anomaly in the Palapa-C1's battery discharge controller, which
could cause four Ku-band transponders to malfunction during
eclipses.

Palapa-C1 was launched from Cape Canaveral, the United States,
on Jan. 31. Satelindo received a report of the anomaly on Feb.
13.

The 34-transponder satellite is now undergoing a 14-day orbit
test. It is scheduled to enter its orbit at 113 degrees east
longitude later this month.

Jasindo, in cooperation with PT Citra International
Underwriter and 17 other domestic and foreign insurance
companies, insured Palapa-C1 for US$164.88 million, covering it
from the time of lift-off to the end of the satellite's operating
period.

Palapa-C1, manufactured by Hughes Space and Communications
Corp. of the U.S., is the HS-601 model of body-stabilized
satellite. It has a lifespan of 13 years, 24 C-band, six extended
C-band and four Ku-band transponders.

Satelindo, which has estimated that each of the Ku-band
transponders is worth $799,000 in revenues a year, is hoping for
further reports this week from Hughes concerning the problem.

The Jasindo statement, signed by operational director Mustafa
Ashari, states Jasindo is making preparations for possible
claims. It has appointed a team to handle the matter and has
prepared all the documents and contracts which might be used as
reference in processing the claims.

Jasindo has also informed the reinsurers, coinsurers and other
participating firms in Palapa-C1's insurance, including the
London and New York-based C.T. Bowring/Marsh & Mc Lennan, about
the possible claims.

Jasindo has handled, or at least taken part, in insuring
virtually all of Indonesia's satellite communications.

Twelve years ago, it paid the state-owned domestic
telecommunications firm Perumtel (now PT Telkom) for the loss of
Palapa-B2. The satellite failed to reach its proper orbit due to
failure of the perigee kick motor after it was released from the
Columbia space shuttle.

The satellite was later found and brought back to earth.
Jasindo, which became the rightful owner of the Palapa-B2 because
it had paid out the insurance claim, sold it back to Perumtel.
(icn)