Starlink Local Operation in Indonesia Ready: Telco Bloody Battle Looms

The Indonesian government has officially greenlit Starlink, SpaceX's satellite-based internet service, to enter the realm of business-to-consumer (B2C) services. Starlink, which initially penetrated Indonesia through a collaboration with Telkomsat, a subsidiary of the state-owned telecommunications giant PT Telekomunikasi Indonesia (Telkom), for business-to-business (B2B) services, is now poised to expand its offerings.

According to Budi Arie Setiadi, the Communications and Information Technology Minister, Starlink must comply with prevailing regulations. To venture into the B2C domain, Starlink must establish an Indonesian legal entity and secure an internet service provider (ISP) license. Budi confirmed that Starlink has initiated this process, having already submitted applications for authorization as a Very Small Aperture Terminal (VSAT) service provider for satellite-based internet and as an ISP.

The initial trial phase for Starlink will commence in the country's new capital city, IKN Nusantara. Looking ahead, Starlink aims to complement the existing internet infrastructure in the IKN alongside Telkom. Budi emphasized, "In the IKN, it will undergo testing, and we're aiming for its timetable to be in 2024," as he remarked on Apr. 4.

Wayan Tony Supriyanto, the Communications and Information Technology Ministry's Director-General of Posts and Information Technology Services, disclosed that Starlink has already established hubs and equipment stations for VSAT. However, Starlink is still in the process of finalizing cooperation agreements for ISP operations. Once all requirements are met, Starlink Indonesia will be poised to offer services to the public akin to other ISPs. Supriyanto remarked, "Possibly after the conclusion of the 2024 Eid period."