Techno-economic analysis of satellite implementation as a broadband internet provider in Indonesia

Abstract

Indonesia is an archipelago that consisting of a group of islands from Sabang to Marauke. To be able to communicate each other, it needs a telecommunications network that can load all regions of Indonesia, without exception. The use of satellites as a means of telecommunications is very suitable to be applied in Indonesia. Because by using satellites, operators can provide internet services to rural areas that cannot access internet services by terrestrial networks. This is what causes businesses in this field is very promising. However, this business is not an expensive business because it requires very large costs in planning until operating. Therefore, it takes a research that shows the feasibility of this business for people to investment. In this paper shows that, NPV value during the active period of the satellite was USD 555,804,583 with an IRR value of 7% with PBP 5 years 8 months. Based on these parameters it can be seen that the investment is still classified as feasible to continue.