8-4-2024 (JAKARTA) The Indonesian Communications and Information Ministry has announced that Elon Musk’s SpaceX has been granted the necessary permit to initiate the Starlink satellite internet service. This clearance paves the way for the commencement of trial operations in Nusantara Capital City (IKN) in May.
“We are anticipating the trial to utilise one ground station,” stated Wayan Toni Supriyanto, the ministry’s director general for post and informatics management, on Wednesday.
Starlink, a subsidiary of the United States aerospace company SpaceX, secured its operating permit after fulfilling the requirements for hub development and device standards set by the ministry’s Post and Informatics Resources and Facilities Directorate General.
Wayan also disclosed that Starlink is currently in the process of acquiring licenses for internet service provider (ISP) and very small aperture terminal (VSAT), essential for offering direct-to-consumer services in Indonesia.
“It is possible that the company has complied with the VSAT [requirements],” Wayan stated, noting the necessity of establishing local cooperation for network access protection. “Perhaps the cooperation agreement has not been finalised yet,” he added.
Explaining the distinction between global Starlink operations and Starlink Indonesia, Wayan emphasised that the latter would function as a telecommunications provider.
“The global [operation] is Starlink. As for Starlink Indonesia, it will hold VSAT and ISP licenses, just like [other internet] providers in Indonesia. They have to buy internet [access] and equipment from Starlink global,” clarified Wayan.
Starlink has been designated as the ISP for Nusantara and its surrounding areas, primarily due to its capability to provide reliable network coverage for remote regions in Indonesia.
“It is suitable for outermost regions with challenging geographical locations,” remarked Communications and Information Minister Budi Arie Setiadi on March 22, attributing this suitability to Starlink’s satellite internet technology.
Although Starlink’s entry into the Indonesian market has been eagerly awaited, Minister Budi underscored the importance of compliance with local regulations, including the establishment of local network operation centres (NOCs) under government supervision.
Foreign ISPs setting up local NOCs enables better government oversight, fostering a healthier and more competitive market environment for all providers.
Starlink’s expansion into Indonesia, as part of its broader entry into Southeast Asia, follows its licensing in Malaysia last year to provide internet services and a partnership deal with a Philippines-based firm in 2022.
“What’s important is that we must have fair business [competition] with a level playing field,” reiterated Minister Budi.
With ownership of approximately 60 percent of the roughly 7,500 telecommunications satellites orbiting Earth, Starlink has emerged as a dominant player in the satellite internet sector.
