According to Indonesia’s Ministry of Communication and Information Technology, Elon Musk’s Starlink needs to work with local telecom providers in order to offer services there.
Indosat, XL Axiata, and Smartfren are among Indonesia’s telcos, in addition to state-owned behemoth Telkom.
Usman Kansong, the director general of information and public communication at the ministry, was quoted by Bisnis as saying that this requirement is in line with local laws that prohibit foreign telecom companies from directly serving customers in Indonesia.
He provided examples of this by mentioning partnerships that already exist between regional operators like Indovision and Transvision and premium entertainment companies like CNN and HBO. These partnerships were the only way for local customers to access content from foreign players.
Starlink has recently come under scrutiny from local players who worry that it could threaten Indonesia’s telco market by creating an “imbalanced playing field.”
The US Federal Communications Commission had awarded Starlink nearly US $900 million in grants before it started operating in 2021.
Starlink has launched about 5,000 satellites so far.
According to reports, Starlink’s services cost about US$200 per month plus a US $599 equipment fee for the signal receiver.
Indonesian Health Minister Budi Gunadi Sadikin suggested reducing the cost of Starlink internet services to about $50 during negotiations with Elon Musk.
Nearly 3,000 community health centers with poor internet connectivity or no internet access at all will get more affordable internet access from the minister.
