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HEADLINE: Elon Musk's Starlink operates in Indonesia, what is the significant impact?

This man, who is also known as an observer of the digital economy, predicts that in the future Starlink will compete in the same areas as cellular operators, because its market is in big cities.

“People in urban areas have more ability to subscribe to Starlink than those in regional areas, because currently the rates are quite expensive. However, cellular operators are still the best choice for internet access on cellphones rather than Starlink, which has limited access,” Heru explained.

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He hopes that competition between local ISPs and foreign ISPs will run healthily. He also appealed to the government to better support and prioritize local ISP companies over foreign players.

“But if we look, the nuance is that Starlink seems to be getting privilege “especially from the government, with the hope that Elon Musk through Tesla will invest in Indonesia,” he concluded.

On the other hand, the General Chair of the Indonesian Internet Service Providers Association (APJII), Muhammad Arif, believes that for urban areas, Starlink services are not too much of a concern for ISPs.

“According to the APJII survey, internet service costs broadband on average it ranges from IDR 100 thousand to IDR 300 thousand per month, while Starlink is still expensive (starting from IDR 750 thousand) per month. “It can be concluded that existing ISPs do not compete directly with Starlink,” he said.

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“Yes, maybe small ISPs operating in rural areas or 3T will have a direct impact. But it should be noted that satellite internet cannot yet beat internet stability broadband,” said Arif emphasized.

Regarding the role of the Satria satellite, Arif revealed that this government-owned satellite still has limited capacity (150GB) so it cannot serve all health, education and government facilities in areas where internet services have not yet been reached.

“The presence of Starlink could be one option for the government to provide service options. But apart from that, APJII, which oversees 140 ISP companies, has become a contributor for BAKTI to provide internet services in 3T areas,” he added.

Arif said that APJII had actually appealed to the government to involve local ISPs before they asked for help from foreign companies (Starlink).

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“Local entrepreneurs who have been with APJII for a long time – as well as contributors of taxes and PNBP to the state – should be involved if the government needs internet facilities in certain areas. Of course we will support as much as possible, and our technology is no less sophisticated to provide a good internet network for the government,” Arif concluded.

Meanwhile, Doni Ismanto Darwin, Telecommunications Observer from the Indotelko Forum, does not deny that the emergence of Starlink will have an impact on the old satellite internet service players who were previously present in Indonesia.

“Of course the impact of the emergence of Starlink will be felt by PSN satellite operators, because both have more or less the same market share,” he said.

He also highlighted the launch of Starlink at the Sumerta Kelod Community Health Center, Denpasar City, Bali. According to him, Starlink will not take market share from the SATRIA satellite internet service, which has provided services for government equipment in 3T areas.

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“The existence of Starlink cannot yet disturb SATRIA, which is an internet service for government equipment in areas that do not have internet access,” he said.

“For example, the Ministry of Health has around 10 thousand Community Health Centers spread throughout Indonesia, and 80 percent of these Community Health Centers have satellite internet service from Satria-1,” he added.

Even so, Starlink is also needed to provide internet services for government agencies that are still not connected to the Satria-1 internet service.

“Starlink could be complementary for Community Health Centers or other government devices that are still untouched by the internet,” he concluded.

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HEADLINE: Elon Musk's Starlink operates in Indonesia, what is the significant impact?

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