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GomSpace has provided an update on its Marine Domain Awareness program in Indonesia, emphasizing progress made in its partnership with the Indonesian government. CEO Carsten Drachmann remarked, "It has been a long journey that started more than 3 years ago, and I know it seems like an even longer wait here at the end, but things will take the time they take, when it comes to government business. by Clarence Oxford
Stockholm, Sweden (SPX) Oct 07, 2024
GomSpace has provided an update on its Marine Domain Awareness program in Indonesia, emphasizing progress made in its partnership with the Indonesian government. CEO Carsten Drachmann remarked, "It has been a long journey that started more than 3 years ago, and I know it seems like an even longer wait here at the end, but things will take the time they take, when it comes to government business. Our Danish Embassy in Jakarta is doing a fantastic job in supporting us and helping the deal to closure."
The company highlighted several milestones that mark significant progress toward the finalization of the contract. A commercial agreement was signed on December 22, 2023, between EPGS Partners-a joint venture of GomSpace and Ellipse Projects-and the Indonesian Ministry of Marine Affairs and Fisheries.
The contract, worth 150 million euros, outlines an end-to-end marine surveillance solution, including 20 satellites. GomSpace's portion of the contract is valued at approximately 60 million euros (650 million SEK). However, for the agreement to take full effect, government-to-government financing is required.
Denmark and Indonesia have already taken steps towards this financing, with both countries signing an MoU for Danish Export financing up to 1 billion euros via the Export and Investment Fund of Denmark (EIFO). On June 20, 2024, EIFO confirmed that GomSpace and its joint venture EPGS Partners meet the criteria for an export loan of 135 million euros to support the project.
Following the signing of the December 2023 agreement, it was decided that the first satellite would launch in the summer of 2024. The assembly of the satellite began immediately, and it was successfully launched on August 16, 2024. The satellite is now fully operational and has already captured its first images of Jakarta.
Drachmann added, "While we are all waiting for the final conclusion, I would like to highlight the significant achievements that have been accomplished thus far. We signed a commercial contract in December 2023, ahead of several other competitors for one of the most significant Marine Domain Awareness programs. GomSpace has not previously been approved by EIFO to receive export financing, but this changed in June 2024, through a very positive engagement with EIFO.
"This approval is a turning point for GomSpace and it will open the door for other similar opportunities, especially in Southeast Asia and Africa. Finally, we managed to build an earth observation satellite in record time with a successful launch in August 2024. All of this speaks to the capabilities of GomSpace, its ability to partner, and sets new standards for what we can achieve in the future."
Despite the pending finalization of the Indonesian contract, GomSpace maintains its outlook for positive cash flow in the second half of 2024 and expects its 2024 revenue to surpass that of the previous year. The company plans to provide further updates on the Indonesian program by the end of Q4 2024.
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