123E

“Program 123E”
Advanced Digital Connectivity Infrastructure
via
Geostationary Satellite Serving Indonesia & ASEAN

Direct-To-User - Secure - Low-Cost Connectivity

Without “any” Requirement for Terrestrial Infrastructure

Long Term, Re-occurring, Infrastructure Revenue – without end

Critical Infrastructure for the Nation’s

Security, IoT, 4thGen, Health, Education, and Rural Communication Needs

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CONFIDENTIAL – NOT FOR DISTRIBUTION
 Program 123E – Immediate Action
123E
PROVIDE AN OPTION TO GOVERNMENT
• Last Friday Kemhan sent two letters to PolHuKam to cancel DNK’s license for non-performance of license
obligations. DNK believes they can save this, and have told PolHuKam (again yesterday) they can take care of
things – but they do not have the capability nor can they acquire the capability to resolve the issues.
• PolHuKam does not want to cancel, but they grow tired of DNK’s excuses, and are now pushed by Kemhan.
• If the license is returned to KomInfo, history has shown that KomInfo will give the license to; Inmarsat (UK) (via a
local company acting as a broker for Inmarsat).
• Now, other companies, small but friends of KomInfo/Kemhan management, are promising “everything”!
• For example; Kemhan’s Director General of Potential (DirJen Pothan) has asked PolHuKam in writing to consider
another company – a “friend” of hers and KomInfo. A small Indonesian consulting company that wants to broker
the slot to Inmarsat – as the same people did illegally in 2006, but now with the blessing of KomInfo.
• Working together with LAPAN under Kemenristek/BRIN as 123E is a space asset Indonesia.
WHY NOT PULL THE LICENSE WHEN DNK FAILED A YEAR AGO?
• The 123E license requires cleaning-up Kemhan’s defaulted contracts - a $60 million obligation.
• Airbus $28 million, Navayo (Hungarian security company) $25 - $30 million, Détente (consultant) $2 million, BUT;
✓ Airbus will release Kemhan from their obligation if Indonesia buys their satellite – which we plan,
✓ Détente will be taken care of as it is a small obligation,
✓ Navayo is in the final month of arbitration against Kemhan, prior the final oral hearings in Singapore. Even the
Indonesian Attorney General has stated that Kemhan will lose this case.
WHAT IS THE URGENCY?
• DNK has already signed with PolHuKam that they will give up the license, if they can not stop the arbitration.
• Kemhan / DNK has until September 4th to come to a settlement agreement with Navayo and their banks or
Kemhan will lose their second SatKomHan program arbitration on September 18th – 20th.
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 Program 123E – Summary
123E
WHAT IS NEEDED
• A politically savvy Indonesian shareholder who understands that helping the country and making a lot of
money honestly, are not mutually exclusive concepts.
• A shareholder who can be the lead local investor and protect the program from the hyenas.
• Someone who can be a partner, move immediately, and intervene in the ongoing politics.
WHAT IS OFFERED
• Equity: Ownership in a multi-billion-dollar infrastructure program, which already has full financial
commitments – made after six months of due diligence, completed in February 2020.
• Team: International team of experts who have built this before, with builder of IndoVision as
architect and program founder, having invested 9 years in preparing this program.
THE FIGURES
• Revenue $18b (17yrs.), IRR 28%, NPV $1.4b, payback 5 yrs. (after 4 yrs. build), Cap-Ex/StartUp - $650m.
• $200 million in equity funds required at a 70/30 ratio.
• Export-Import supplier’s credit covers 80 – 85% of $500 (Airbus, Ariane/Space-X, Hughes, Viasat).
• Four estimates value the program today at $700 million to $1.2 billion
EQUITY POSITIONS
• Foreign Investor 51% - 67% (legal limit – they want 67%, but will take 51%)
• Local Investors 15% - 30% (Private and/or SoEs)
• Foreign Satellite Operator/Supplier Depending on above positions – as needed.
• Founders & Senior Employees 15%
• Optimum Ownership 60%, 25%, 15%
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 Program 123E – History
123E
1994 - 2000 - Indonesia ITU Filing First Used 123E
• 100 – 1,000 times more powerful than other satellites
• In Asia only Indonesia has this kind of satellite
2006 – Slot & Spectrum illegally sold to Inmarsat (UK)
• Selling Indonesia’s national space assets
• Not allowed under international and Indonesian law
2015 Garuda-1 (under UK control) Satellite De-Orbited
• If a satellite is de-orbited – time limit by ITU on replacement or loss
• 123E given to Kemhan
2015-2018 - Kemhan given 123E to Save for Indonesia – Failed
• Kemhan defaulted on program supplier contracts ($80m)
• Kemhan returned orbital slot to Ministry of Communications
2018 - December 10th - 123E License Awarded
• PT. Dini Nusa Kusuma (DNK) awarded license – 20 months ago
• Has not fulfilled any of the license obligations – Most critical are;
✓ Putting in place the financing required to build the program
✓ Resolving MoD’s obligations to program suppliers
Last Week - Kemhan asked PolHuKam to Rescind DNK’s License
• DNK is fighting to keep the license, but can not satisfy its responsibilities
• The license needs to be saved from going back to KomInfo.
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