Finance

BRI’s Satellite Strengthens Its Microbanking Reach

 

BRIsat satellite, owned by PT Bank Rakyat Indonesia tbk (BBRI), will orbit soon. With an investment worth US$ 250 million or around Rp 3.25 trillion, the satellite will operate for 15 years to strengthen BRI to reach remote areas, particularly to assist its microcredit businesses. Satellite contribution to the performance of the new company will be visible in a year.

BRI is collaborating with Space Systems Loral LLC, a satellite manufacturer from the United States, and Arianespace, a French rocket launchers company. The House of Representatives (DPR) opposed BRI’s plan to have a satellite due to the company’s inexperience in operating one. BRI currently employs 19 senior engineers, 3 permanent employees, and 5 domestic consultants to operate its satellite.

The management said BRIsat will improve the efficiency in authorization process of transactions, maintain the quality of the network, realize financial inclusion, and enhance the intermediation function. BRIsat’s services include 10,600 branches, 237,000 electronic channel outlets, and approximately 53 million customers across the country. In the next few years, BRI could also gain revenue from satellite transponder leasing to other companies.

Jacques Breton, Senior Vice President for Sales and Business Development of Arianespace, said that the demands from companies requiring better quality broadcast services with 4K technology and data transmission continues to increase. Demands from telecommunications companies is predicted to continue rising along with the growth of Internet and data connectivity services. (*)

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Hari Widowati


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