Satelindo appoints U.S. firm to launch satellite

Satelindo appoints U.S. firm to launch satellite

JAKARTA (JP): The government confirmed yesterday that PT
Satelindo, a telecommunication firm, has appointed Martin
Marietta and General Dynamics of the United States to launch the
second of the country's new generation telecommunication
satellites, called Palapa C-2.

"Yes, we have switched from Arianespace of France to U.S.
company to launch the C-2 satellite," Jonathan Parapak,
secretary-general of the Ministry of Tourism, Post and
Telecommunications, said at his office.

"We expect the launching to take place in January 1996," he
said, adding that the launching will use Atlas IIAS rocket.

Parapak said that the switch was caused by Arianespace's
recent failures in launching several satellites -- none of which
were owned by Indonesia -- from their base in Kourou, French
Guiana.

"If we did not replace Arianespace, the earliest schedule for
the launching would be in April 1996," Parapak said.

Arianespace is originally scheduled to launch the Palapa C-1
satellite, equipped with 48 transponders, next October but the
launching will have to be postponed until next April.

The timing of the launching for the new satellite is vital
because the Palapa B-2P satellite is scheduled to end operation
in December.

Satelindo

Parapak, however, declined to comment further on the launching
matter, saying that all questions should be addressed to
Satelindo, whose executives are scheduled to appear in a hearing
with the House of Representatives today.

Satelindo, set up in 1993 to provide various telecommunication
services, is 45 percent owned by a subsidiary of the Bimantara
Group, a conglomerate chaired by one of President Soeharto's
sons, 25 percent by DeteMobil, a subsidiary of Deutsche Telekom
of Germany, 22.5 percent by PT Telkom and 7.5 percent by PT
Indosat. Both Telkom and Indosat are state-owned enterprises.

Satelindo is also reported to own 86 percent of Palapa C-1,
while the remainder is held by PT Pasifik Satelit Nusantara, a
joint venture company, which also involves the Bimantara Group,
that acquired the Palapa B-1 satellite from Telkom in 1991.

In 1993, Arianespace won the launching tender although General
Dynamics put in a lower bid, reportedly with a difference of
around US$10 million.

Available records cite that the American firm, after the
announcement of the tender results, sought explanations from the
Indonesian government over its defeat at the hands of
Arianespace.

Satelindo executives justified their choice of Arianespace by
saying that the French firm had a better success record in its
launching history than General Dynamics, a factor which
supposedly reduced insurance costs.

In the meantime, Satelindo has managed to secure a group of
subscribers for its C-1 satellite. They include former
subscribers to the B-2P satellite, such as the Bimantara-
controlled television company, PT Matahari Lintas Cakrawala;
Canal France International; Viacom of the United States, and
television broadcasters from Hong Kong and New Zealand.

Available data cite the C-1's leasing fee at a range of $1
million to $2 million per year for one transponder.

The first two of the Palapa C satellites, each guaranteed to
be functional for 12 years, are built for $128 million by Hughes
Aircraft of the United States, the aeronautics company which has
been making all of Indonesia's satellites. (hdj)