Jakarta – Based on the findings of the Business Competition Supervisory Commission (KPPU), it is recommended that the Indonesian government encourage the operation of the Starlink satellite-based internet service not to be conducted in major cities. Regarding this matter, the cellular operators Indosat Ooredoo Hutchison, Smartfren, Telkomsel, and XL Axiata have spoken out.
Steve Saerang, SVP Head of Corporate Communications Indosat Ooredoo Hutchison, said that his party hopes the government can formulate balanced regulations to maintain the sustainability of the telecommunications industry, especially for operators who have already committed and invested heavily in building infrastructure to reach remote and outermost areas of Indonesia.”Thus, it is hoped that it can help maintain a healthy business climate to continue supporting the equitable distribution of digital access throughout Indonesia,” said Steve.
VP Corporate Communications & Social Responsibility Telkomsel Saki H. Bramono explained that, in principle, Telkomsel understands that satellite-based communication systems like Starlink offer solutions to overcome geographical challenges in the 3T (Frontier, Remote, Disadvantaged) areas that are difficult to reach by conventional telecommunications infrastructure such as fiber optics or cellular networks.
Telkomsel stated that as part of the TelkomGroup, it consistently supports the acceleration of digital transformation across Indonesia through network expansion, the construction of Merah Putih and USO BTS, and investment in inclusive innovative technology.
So far, Telkomsel has collaborated with Telkomsat to support internet needs in 3T areas and other hard-to-reach regions by utilizing satellite technology, one of which is provided by Starlink. We hope this B2B scheme becomes the main focus of Starlink’s presence in Indonesia, including strengthening connectivity in waters and remote areas.In order to create a healthy and fair digital ecosystem, Telkomsel hopes that government policies will continue to create an equal playing field in the telecommunications and digital sectors by ensuring the same obligations for all service providers, both domestic and international, including the establishment of business entities in Indonesia, compliance with taxation, local content requirements, as well as aspects of security and data sovereignty,” he said.
XL Axiata gave a positive value to the KPPU’s study results regarding Starlink’s operating area in Indonesia. According to him, this will create a healthy telecommunications industry climate in the future, provided there is strict supervision and enforcement of regulations by the government that governs this matter.We also hope that with the KPPU’s study, the government can play a more active role in enhancing collaboration within the telco industry ecosystem,” said Group Head Corporate Communications & Sustainability XL Axiata Reza Mirza.
Likewise, Smartfren supports Starlink to focus on operating in the front, underdeveloped, and outermost regions (3T) to accelerate the availability of internet access in those areas. “It’s great that with the presence of Starlink services, there are no longer any obstacles to providing internet access in remote or 3T areas,” said Smartfren’s President Director, Merza Fachys. Previously reported, KPPU has completed a study related to the satellite-based internet service, Starlink, which caused a stir when it entered the Indonesian market.
For your information, the KPPU has reviewed the entry of Low Earth Orbit (LEO) internet service providers from various aspects such as government policy, consumer perception, infrastructure or technology readiness, and the concentration of the internet service market. This study has been conducted from May 2024 to October 2024, through focused group discussions with the Indonesian House of Representatives, Ministries and Agencies, associations, business actors, and academics.
The Director of Economics at KPPU, Mulyawan Ranamenggala, stated that the study was conducted to obtain comprehensive primary data, and a survey was also carried out among internet service users. “Based on the study, KPPU recommends to the President of the Republic of Indonesia that the Government prioritize the reach of LEO satellite-based internet services in the Disadvantaged, Frontier, and Outermost (3T) regions,” Mulyawan said, as quoted from the press release on Friday (29/11).
Furthermore, the KPPU also recommends that the provision of internet services in the 3T areas prioritize partnerships between LEO-based internet service providers and telecommunications service providers as well as MSMEs, taking into account national interests.
The suggestion was submitted in writing on November 18, 2024, to the President of the Republic of Indonesia and copied to the Chairman of the House of Representatives of the Republic of Indonesia, the Chairman of Commission VI of the House of Representatives of the Republic of Indonesia, Coordinating Minister for Political, Legal, and Security Affairs and Minister of Communication and Digital.
