Starlink, a satellite internet provider owned by SpaceX, has announced it will no longer accept new users in Indonesia.

This decision was published on Starlink’s official blog and is due to the service reaching its capacity limits in the country.

In the announcement titled “Important Note for New Customers in Indonesia,” Starlink said that the service is currently unavailable for new customers because capacity is sold out nationwide.

The company also confirmed it has paused the activation of new Starlink kits purchased through retail or third-party sellers.

Existing users in Indonesia are advised to check Starlink’s official website for updates or to join a waiting list by paying a deposit for when capacity becomes available.

🔗 Source: Kompas.com

🧠 Food for thought

1️⃣ Indonesia’s archipelagic geography creates both opportunity and unique challenges for satellite internet

Indonesia’s geographic reality of 17,000+ islands spread across vast ocean distances makes it a prime market for satellite internet solutions like Starlink, despite the higher cost compared to traditional providers.

Traditional ISPs in Indonesia charge between 200,000-400,000 IDR monthly compared to Starlink’s 750,000 IDR, yet Starlink has quickly reached capacity limits despite this premium pricing1.

This rapid capacity exhaustion illustrates the substantial unmet demand for reliable internet in areas where fiber optic deployment remains economically unfeasible or technically challenging.

Indonesia’s telecommunications infrastructure development faces persistent geographic obstacles, which explains why the government licensed Starlink in May 2024 with an initial investment of IDR 30 billion (approximately US$1.8 million)2.

While over 70% of Indonesia’s population has internet access, significant connectivity gaps remain in remote areas, highlighting why satellite internet has gained traction despite its higher cost structure1.

2️⃣ Starlink’s entry exemplifies the tension between local market protection and closing digital divides

Starlink’s Indonesia experience mirrors a pattern seen in other emerging markets where local telecommunications providers push for regulatory protection while governments prioritize expanded connectivity.

The Indonesian Internet Service Provider Association has actively opposed Starlink’s entry, urging government intervention to protect local businesses from what they perceive as unfair competition1.

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