In a surprising turn of events, the Indonesian telecom industry has expressed its concerns over the entry of Elon Musk‘s Starlink into the country, calling for a temporary halt to the company’s services.
What Happened: The Indonesia Internet Service Provider Association has urged the Indonesian government to put a stop to Starlink’s consumer services, citing potential threats to the local ISP industry, reported Nikkei Asia on Wednesday.
The association’s chairman, Muhammad Arif Angga, has called for this suspension until a clear regulatory framework is established.
Arif warned that excessive dependence on foreign internet service providers has “the potential to disrupt the sustainability and independence of the local ISP industry.”
Despite the government’s warm reception of Starlink in May, local telecom groups are concerned about the potential disruption to their market share. Starlink, a satellite internet service operated by Musk’s SpaceX, offers high-speed internet using a network of low-orbit satellites.
Starlink’s services in Indonesia are priced at 750,000 rupiah ($45) per month, with an additional 5.9 million rupiah cost for an antenna. However, local operators provide similar network speeds at a lower cost, ranging from 200,000 to 400,000 rupiah per month.
Despite the initial price disparity, Starlink has a history of reducing prices in countries where it has been operational for some time. The company also plans to introduce a service that offers direct smartphone internet connectivity without the need for an antenna, potentially posing a threat to both fixed-line internet providers and mobile carriers.
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Starlink’s expansion into Indonesia, the third Southeast Asian country to receive its consumer services, has raised concerns among local telecom operators. The company’s unique business model, which does not require the construction of base stations in each country, makes it easier for Starlink to expand across borders.
Why It Matters: The opposition from Indonesian telecom groups comes at a time when SpaceX is planning to introduce a more affordable version of its Starlink dish. This new dish, expected to be priced between $250-$300, aims to cater to low-income countries, potentially increasing Starlink’s appeal in regions like Indonesia.
Moreover, Starlink’s expansion into other countries, such as Sri Lanka, highlights its growing footprint in Asia. Sri Lanka’s President Ranil Wickremesinghe emphasized the transformative impact of Starlink on connectivity, especially in remote areas.
Despite these hurdles, Musk remains optimistic about Starlink’s potential. The service has already made headlines for its impact on isolated communities, such as the Marubo tribe in the Amazon, where it has provided much-needed internet access.
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