The costs incurred by PT Bank Rakyat Indonesia (BBRI) for the operation and maintenance of the new satellite will be evident in the third quarter of 2016 and in the following years. The financial report will indicate whether the BRI investment on a satellite is worth it or not.
Reza Priyambada, Head of Research NH Korindo Securities Indonesia, said that the BRI management must already take into account the costs incurred, including cost savings of communication with their BRIsat. “BRI’s bookkeeping will show their satellite-related costs. We can then assess whether it is worth it or not, “said Reza. BRI’s decision to have a satellite is considered reasonable because the satellite will be used to facilitate cross-communication transactions across branches with connections at the central office.
BRI has disbursed US$ 250 million or around Rp 3.38 trillion to build and launch BRIsat. Management calculated that the cost savings with their satellite communications will reach Rp 500 billion per month. However, the bank is also expected to have to spend Rp 70 billion to Rp 90 billion per year for operational costs and maintenance of the satellite. (*)
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