Starlink must work with local partner to enter Indonesia, ministry says

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Indonesia’s Ministry of Communication and Information Technology said that Elon Musk’s Starlink must partner with domestic telecom operators in order to provide services in the country.

In addition to state-owned giant Telkom, Indonesia’s telcos include Indosat, XL Axiata, and Smartfren.

This requirement aligns with local regulations stating that foreign telecom firms cannot directly serve customers in Indonesia, according to Usman Kansong, the director general of information and public communication at the ministry, as quoted by Bisnis.

He illustrated this by citing existing partnerships between over-the-top entertainment providers like HBO and CNN with local operators such as Indovision and Transvision. Only through such collaborations did content from foreign players become accessible to local customers.

Lately, Starlink has been seen by local players as a potential threat to Indonesia’s telco industry, fearing that it would pose an “imbalanced playing field.”

Before commencing its operations in 2021, Starlink had received nearly US$900 million in grants from the US Federal Communications Commission.

To date, Starlink has launched around 5,000 satellites.

Reports indicate that Starlink’s services come at a price of approximately US$200 per month, along with a US$599 equipment fee for the signal receiver.

During negotiations with Elon Musk, Indonesian Health Minister Budi Gunadi Sadikin proposed lowering the price of Starlink internet services to around US$50.

The minister plans to provide more affordable internet access for nearly 3,000 community health centers with poor internet connectivity or without any internet access at all.

See also: Malaysia, Indonesia overhyped Elon Musk’s Tesla, Starlink