Bank Rakyat Indonesia Finally Sees Launch of BRIsat
The Gods seemed not in favor of the BRIsat, the satellite of Indonesia's second-largest bank by assets Bank Rakyat Indonesia (BRI). The BRIsat was originally scheduled to be launched on 9 June 2016 (Indonesian timezone). However, due to technical problems and bad weather the launch had to be postponed three times. Finally, on early Sunday (20/06) the satellite was launched by Arianespace from the Guiana Space Center, Europe's Spaceport in Kourou (French Guiana), hence ushering in a new era for Indonesia's digital banking industry.
The launch represents a new era in the global banking industry because it involves the first satellite that is owned and operated by a bank (prior to the BRIsat all banks across the globe rented satellite services from telecommunication firms). Equipped with the BRIsat, Bank Rakyat Indonesia is also in a better position to compete against foreign counterparts after the region will see a semi-integrated financial market by 2020 through the ASEAN Economic Community.
The BRIsat will cover the ASEAN area, East Asia, part of the Pacific (Hawaii), and the western part of Australia. This USD $250 million satellite, which is estimated to have a 17-year lifespan, will be positioned in an orbit above Papua (150.5° East). Clients of BRI will be offered free WiFi to ease communication (including video banking) and financial transactions.
Benefits of the BRIsat:
- Boost efficiency by cutting BRI's operational costs for the communication network
- Curtail connection problems in BRI's network across the archipelago
- Make banking services available in the remote areas of Indonesia
- Diversify those banking services of BRI that require the latest technology
Bank Rakyat Indonesia (BRI) is a state-controlled financial institution that is listed on the Indonesia Stock Exchange. With the support of the BRIsat, the lender aims to become the largest digital banking network by 2019 and offer the best digital banking services by 2020.
Shortly before the stock market closes on Monday (20/06), shares of BRI were up 0.49 percent to IDR 10,300 a piece. However, so far this year, the bank's shares have fallen nearly 10 percent.
Stock Quote Bank Rakyat Indonesia - BBRI: