JAKARTA, May 17 (Xinhua) -- Senior officials of Chinese firm China Great Wall Industry Corporation (CGWIC) and Indonesian firm Palapa Satelit Nusa Sejahtera (PSNS) Wednesday signed a purchase contract for the latter's satellite system, namely PALAPA-N1, scheduled to orbit in first half of 2020.

PALAPA-N1 communication satellite project is the first communication satellite of Indonesia that is produced by China.

PSNS is a joint venture enterprise of prominent telecommunication firm operating in Indonesia, Indosat Ooredoo, and Pasifik Satelit Nusantara (PSN).

Under the contract, CGWIC is responsible for in orbit delivery of the PALAPA N1. CGWIC shall provide a package solution with the products and services to its Indonesian client, including the satellite, the rocket launching service, ground system, insurance and financing support.

The PALAPA-N1 satellite, which is designed to replace the PALAPA D, will be launched to its orbit slot at 113°E in the geostationary arc by Long March 3B launch vehicle from the Xichang Satellite Launch Center in China.

PALAPA-N1 will provide the latest technology of High Throughput Satellite for broadcast and broadband telecommunications.

Speaking on the sideline of the signing ceremony, Indosat Ooredoo CEO Alexander Rusli said the new satellite would greatly help broadband penetration among the society in Indonesia.

"It would also help accelerating the creation of digital society in Indonesia, support the government's plan to make Indonesia the largest digital state in Southeast Asia," he added.

The contract signing was witnessed by Indonesian Informatics and Communications Minister Rudiantara, Chinese Embassy Charge d'Affaires Sun Weide and Vice President of China Aerospace Science & Technology Corporation (CASC), the parent firm of CGWIC, Yang Baohua.

CGWIC President Yin Liming said the satellite would significantly improve the broadcast and broadband in Indonesia.

"It would also be an embodiment of friendship between Chinese and Indonesian people," he said in a statement.

CGWIC won the contract after undergoing a strict auction process considering technical, manufacturing period and cost efficiency. It brushed competitors from Europe and the United States to get the contract.

The PALAPA-N1 satellite is developed by China Academy of Space Technology (CAST), a subsidiary of CASC.

The PALAPA-N1's satellite system is designed to have lifetime of more than 16 years, to be equipped with a total of 42 transponders.