Indonesia’s internet landscape is about to undergo a significant transformation with the official entry of Elon Musk’s satellite-based internet service, Starlink. This development has sparked discussions about its potential impact on the domestic market for internet services. Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, shared insights on how Starlink could reshape the market dynamics.
Starlink’s arrival is expected to usher in a new era of competition, challenging the dominance of existing internet service providers. Luhut emphasized that the presence of Starlink would prevent any single entity from monopolizing the market. “With Starlink entering the market, there won’t be any monopolies anymore. Everyone will compete freely. Up until now, some have been dominant for several decades,” he stated during an event at the Bali Nusa Dua Convention Center on Monday night (May 20, 2024).
Luhut further elaborated that the introduction of satellite-based internet services in Indonesia would make the market more competitive, encouraging providers to strive for greater efficiency. “There is no problem; we must learn to compete to achieve efficiency as a result of the competition,” he added.
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He also highlighted the expansive reach of Starlink, which could facilitate connectivity in remote areas, including isolated islands, thus enhancing accessibility across the country.
Meanwhile, Tesar Sandikapura, Chairman of the Indonesia Digital Empowering Community (Idiec), provided additional perspectives on Starlink’s potential impact.
According to a report from Bisnis.com on Monday (May 20, 2024), Sandikapura noted that Starlink, with its superior service speeds compared to Bakti’s satellite and Telkom’s GEO satellite, could capture a significant share of the satellite market in Indonesia.
Currently, key players in the satellite internet sector include Telkom, PSN, and Bakti. Sandikapura mentioned that despite the relatively high service prices, the potential for customer demand and beneficial schemes could lead Satria-1 customers to switch to Starlink.
“With better service speeds, Starlink can indeed take over the satellite market here. If the demand is there and the offerings are attractive, we might see a shift in customer preferences,” he remarked.
In conclusion, the entry of Starlink into Indonesia’s internet market is poised to disrupt the status quo, fostering a more competitive environment.
This move could lead to improved services and greater efficiency among providers, ultimately benefiting consumers. As the country adapts to this new player in the market, the potential for enhanced connectivity and accessibility, especially in remote areas, offers a promising outlook for the future of internet services in Indonesia.
