SkyCommons Observatory

Starlink is the only LEO provider authorized for direct retail service in Indonesia. Rather than compete against Starlink, local satellite operators Telkomsat and Pasifik Satelit Nusantara (PSN) have shifted primarily into backhaul partnerships. Indonesia’s House of Representatives (DPR) have described the result as a "functional monopoly" that threatens the solvency of domestic telecom firms. The national competition authority, KPPU, opened an investigation into Starlink's market conduct in 2024 (case 42/KPPU-PR/V/2024), but stopped short of establishing predatory pricing under the legal definition. KPPU issued a non-binding recommendation to restrict Starlink's operations to 3T regions, where over 1,200 local ISPs have historically operated. This recommendation has not been enforced.

In March 2025, Amazon Kuiper (later rebranded as Amazon Leo) also submitted applications for operational permits, including telecommunications licenses, and satellite leasing rights to the Ministry of Communication and Digital Affairs (Kemkomdigi) suggesting they would build six gateway stations and invest up to USD $90 million (approximately Rp1.4 trillion) by 2035. Amazon's entry into the market will change the dynamics of the Indonesian market, though much remains unknown.

Satellite internet is relatively affordable for urban consumers, but largely out of reach for the frontier communities Starlink was meant to benefit. Starlink residential subscription prices range from Rp479,000 (around $27) per month up to Rp1,000,000 (around $55) per month. The rates are low enough to draw predatory-pricing complaints from local ISPs, but the upfront hardware costs of Rp7.8 million (around $485) are a significant barrier for low-income 3T communities. Pricing is left to the market with no upper or lower limits. Indonesia’s gross domestic product (GDP) per capita stands at Rp83.7 million (approximately USD $5,083) per year. Income in 3T regions is significantly lower than in urban areas.

National connectivity in Indonesia is strong, however the tools meant to close connectivity gaps, like LEO satellite, are still unable to reach the people who need it most. For instance, Indonesia has 12,548 signal "blank spot" villages with dead zones in Papua and West Papua. Overall internet penetration is high at 80.5% of the population. Satellite broadband accounts for just 1.05% of connections. Starlink's pivot toward urban markets has narrowed their 3T mandate to institutional deals, such as with Puskesmas, government mandated community health clinics located across the country.

In 2022, former President Jokowi visited SpaceX headquarters in Texas. Starlink’s entry became a presidential priority, which followed direct personal lobbying by Elon Musk. The process has been characterised by local industry as a fast-tracked "red carpet" entry that sidelined standard consultation. Indonesia's satellite telecommunications sector is overseen by the Ministry of Communication and Digital Affairs (Kemkomdigi or Komdigi), which combines policy-making and regulatory functions. They set policies, allocate frequencies/ orbital resources, and issue licences for telecommunication and satellite operations. Komdigi issued the license for landing rights and a space radio station, VSAT and ISP at an accelerated pace without any documented engagement with domestic stakeholders.

The 1999 Telecommunications Act has never been amended and does not address satellites. In 2025, Ministerial Regulation No. 3/2025 simplified satellite licensing, encouraging local-global partnerships and requiring local infrastructure to monitor local traffic. Indonesia allows up to 100% foreign ownership in telecommunication service companies, including for satellite ISPs. However, this new regulation also governs data classification and now requires the use of in-country data facilities, which is a first substantive condition attached to satellite operations.

Starlink's license was publicly announced, but the full technical conditions and annexes remained unpublished. Since 2025, Indonesia now requires operators to hold a local ISP license and establish a local legal entity. PT Starlink Services was established to meet this new requirement, but had no physical office nor any customer service or network operations center when they launched. Despite an active investigation by Indonesia’s Competition Commission (KPPU) into alleged predatory pricing, and APJII’s recommendation that Starlink’s retail permits be suspended, no sanction has been issued. In its final conclusion, the KPPU stated that LEO internet services should be limited to 3T regions, since Starlink reaches areas others cannot. The KPPU also noted that LEO service providers need to collaborate with telecommunications operators and small and medium-sized enterprises. Although Law No. 27/2022 on Personal Data Protection mandates the establishment of a Data Protection Authority, to date there is still no dedicated data protection authority overseeing the personal data flowing through the service.