Elon Musk's Starlink Satellite Has Passed Operational Feasibility Test in Indonesia
The existence of the Starlink low orbit satellite service can be used as a complement.
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JAKARTA, KOMPAS — The Ministry of Communications and Information Technology confirmed that billionaire Elon Musk's low orbit satellite, Starlink, has passed operational feasibility tests so that it can immediately be sold to the wider public. The ministry will not intervene in price formulation, but will try to maintain equal treatment in the telecommunications services market.
"Starlink Satellite has passed the operational feasibility test (ULO) and has a certificate of operational fitness," said Minister of Communication and Information (Menkominfo) Budi Arie Setiadi, Thursday (2/5/2024 ), in Jakarta.
According to him, one of the requirements to pass the ULO is to have an earth station. Starlink satellite already has several earth stations, thus it can be considered to have passed the ULO.
Budi stated that the Starlink satellite service trial will be conducted in the Capital City of Nusantara (IKN) in May 2024. He did not disclose specific details of when.
Regarding the price of Starlink satellite internet services, he continued, the Ministry of Communications and Information Technology will not interfere. So far, the ministry has also not involved itself in determining the service prices of both mobile telecommunications operators and internet providers.
"If they (Starlink satellite) lower the price, then we will monitor that," he said.
Previously, the Director General of Post and Information Services at the Ministry of Communication and Information, Wayan Toni Supriyanto, said that Starlink satellite services in Indonesia were distributed through PT Starlink Services Indonesia, a legal entity owned by Starlink in Indonesia. The Indonesian government has removed the satellite-based telecommunications services business from the negative investment list (Kompas daily, 5/4/2024).
Quoting the Starlink.com page, the availability of Starlink satellite communication services has been stated as coming soon to Indonesia in 2024 since last year up to now. In the Asia Pacific region, Starlink satellite services are already available in several countries such as Malaysia, the Philippines, and Australia.
If they (Starlink satellite) lower the price, then we will monitor that.
The Starlink satellite telecommunication service has previously been available in Indonesia through a business-to-business (B2B) scheme. This was done through a cooperation mechanism with Telkomsat, a subsidiary of PT Telkom Indonesia (Persero) Tbk.
In 2022, Telkomsat received the landing rights for Starlink from the Ministry of Communication and Information. Thus, Telkomsat can provide services on intermediate networks connecting telecommunications backbone infrastructure and transmitter towers owned by the Telkom Group.
Regarding the Starlink satellite which is ready for retail sale, a number of domestic telecommunications industry players have also responded.
Director of PT XL Axiata Tbk I Gede Darmayusa said that from the start his party welcomed the Starlink satellite as a technology to help provide telecommunications services to areas that are difficult to reach, such as 3T (underdeveloped, advanced , and outermost/3T). He believes that Starlink's market share will be different from the existing telecommunications services market.
"We consider Starlink as a complement. We see their market as different from ours. For example, a market that is very difficult to access in terms of logistics infrastructure," he said.
Gede added that the presence of Starlink satellites can be utilized by mobile telecommunication operators to power up their transmitter towers located in 3T areas. Forms of cooperation like this can be explored by mobile telecommunication operators.
"We hope that the government will be able to provide equal treatment between us cellular telecommunications operators and Starlink satellites," said Gede.
Meanwhile, Director and Chief Business Officer Indosat Ooredoo Hutchison (IOH) Muhammad Buldansyah believes that Starlink satellite retail services will have more potential to compete with internet-based service providers or VSAT. In the long term, there is a possibility that Starlink's services will compete with other low orbit satellite operators targeting the Indonesian market, such as OneWeb.
"The competition issue will depend on how far the Indonesian Government is willing to allow the permission for such service products to appear. Later, various internet services (from various operators) will compete in terms of service, price, and coverage. For us, the most important thing is for the government to maintain equal treatment."
Agung Harsoyo, a lecturer at the School of Electrical Engineering and Informatics at the Bandung Institute of Technology, believes that national internet service providers are accustomed to competition. If the services provided by different providers are the same, and the government establishes equal regulations and business practices, then the telecommunications industry climate will be well-maintained.