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Ombudsman Asked to Conduct Evaluation regarding Starlink Investments and Permits in Indonesia

Liputan6.com, Jakarta – Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia was outspoken about the value of the investment made by Elon Musk with the Starlink satellite internet service.

In a working meeting with Commission VII DPR RI, he revealed that Starlink's investment value was relatively small, with a workforce of only three people.

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“Starlink's investment according to OSS (Online Single Submission) data is IDR 30 billion. The workforce is three registered people,” Bahlil explained, as quoted from the channel Liputan6.com BusinessFriday (14/6/2024).

Questioning Minister Bahlil's statement, Public Policy Observer Trubus Rahardiansah, assessed that Starlink's investment amount to carry out business activities in providing closed VSAT telecommunications services (JARTUP VSAT) and internet service provider (ISP) permits was unreasonable.

“Is that capital enough to build a JARTUP VSAT and ISP business? Even though the telecommunications industry has the characteristics of high CAPEX and high expenditure. Does it make sense that only 3 employees are needed? In my view. that's absolutely impossible,” he explained.

Starlink's lack of investment has made Trubus question the effectiveness of President Joko Widodo and Minister Luhut's visit when they met Elon Musk in the US. Moreover, Tesla's investment in Indonesia has not yet been realized.

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“Starlink's investment period is less than that of ISP entrepreneurs, and the number of employees in Indonesia is far below that of small ISPs in Indonesia. “If only to provide internet access in 3T (Disadvantaged, Frontier and Outermost) areas, Kominfo also has the SATRIA satellite,” he said.

As is known, to roll out JARTUP VSAT telecommunications services and ISP permits as is done by Starlink, the capital required is more than IDR 30 billion.

Apart from that, to be able to serve all regions of Indonesia, Starlink requires a minimum of 9 earth stations to be used as hubs. The minimum investment to build 1 earth station like the one owned by BAKTI Kominfo in the SATRIA project is USD 5 million or around IDR 81.7 billion.

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Ombudsman Asked to Conduct Evaluation regarding Starlink Investments and Permits in Indonesia

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Ombudsman Asked to Conduct Evaluation regarding Starlink Investments and Permits in Indonesia

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