Starlink Official Launch in Indonesia
Can Local Internet Service Provider Keep Up with Starlink's Satellite in Remote Areas?
An Internet Service Provider (ISP) is a company that supplies internet access to the public. ISPs are telecommunications companies that provide crucial internet access for modern communication and activities and can be classified into hardware providers, which offer internet access and storage services, and software providers, which offer content and technical support (Doverspike, 2010; Xiao-Wei, 2009). They offer various services, including data communications and telephone connections (Dheeraj, 2017). In Indonesia, ISPs are more commonly known as Internet providers. Examples of Internet provider companies include FirstMedia, IndiHome, BizNet, and many more. Among these companies, there is one of the most recognized Internet provider companies in Indonesia. The Indonesian internet provider landscape is dominated by PT. Telkom offers a range of services, including wireless LAN-based Indihome wireline-based Telkom Speedy, and the industry is highly competitive, with Telkom facing intense competition from 11 other providers (Hidaya, 2024; Herlianto, 2011). However, in Indonesia, many remote areas still lack reliable internet access. Elon Musk’s Starlink aims to extend high-quality internet to these underserved regions using low earth orbit (LEO) satellites. Low Earth Orbit (LEO) satellites, which orbit the Earth at altitudes of 500 to 2,000 kilometers, are used for public networking and scientific purposes (Cakaj, 2014). This attempt can become a significant technological advancement, especially in the internet in Indonesia. Starlink should be implemented in Indonesia's remote areas to provide high-quality internet access, while local Internet Service Providers (ISPs) must improve their services to remain competitive and make sure to cover bigger locations.
Space Exploration Technologies Corporation, also known as SpaceX, is an American satellite communications provider, launch service provider, and spacecraft manufacturer. Starlink, a satellite internet service developed by SpaceX, started in 2015 with its first prototype satellites, which were launched in 2018. Utilizing LEO satellites, Starlink aims to provide high-quality internet access worldwide. Elon Musk's vision includes reaching areas that local ISPs cannot serve. Starlink, a satellite constellation by SpaceX, aims to provide global internet access (Halferty et al., 2022). Currently, there are around 5,000 satellites owned by Starlink that have successfully orbited in space. The Starlink system is now in the lead among the millions of artificial satellites in altitudes under 600 kilometers, yet the number of them continues to change frequently (McDowell, 2020). The Starlink satellite network is stated to be implemented to provide high-quality internet connectivity to those living in remote areas. SpaceX CEO Elon Musk is scheduled to launch his Starlink internet service officially during the 10th World Water Forum (WWF) event in Bali, Indonesia. Accompanied by President Joko Widodo (Jokowi), Elon Musk will formally start with installing Starlink at Puskesmas Pembantu 1 Sumerta Kelod, Denpasar, Bali.
Indonesia, a massive archipelago of more than 17,000 islands, has a lot of challenges when it comes to accessible internet access. Although major places such as Jakarta have advanced internet facilities, remote and rural areas, particularly in Papua and eastern Indonesia, still lack internet access. Anang Latif, President Director of BAKTI (Telecommunication and Information Technology Accessibility Agency), said that around 11 percent of Indonesian regions, including 5,300 villages with 3,500 in the Papua region, remain without internet access. The purpose of Starlink being available in Indonesia is to serve people in these rural areas. As many Indonesians live in these remote areas, the lack of connectivity to the internet impacts their accessibility to any possible public service. One of the government's projects, like installing base transceiver stations (BTS), has been disrupted by high prices and corruption issues, as evidenced by the Attorney General's Office naming the Minister of Communication and Information Technology, Johnny G. Plate, as a suspect in the alleged corruption of the 4G BTS project and supporting infrastructure packages 1, 2, 3, 4, and 5 of BAKTI Kominfo in 2020-2022. This issue requires a flexible Internet Service Provider (ISP) solution like Starlink.
Indonesia's telecommunications landscape is dominated by PT. Telkom, which provides services through Indihome and Telkom Speedy. Despite being the leading provider, Telkom Indonesia, along with other local Internet Service Providers (ISPs), struggles to extend services to remote areas due to a lack of infrastructure, such as the absence of electric poles to support the fiber optic cable and high-cost issues. Even with strict competition among the 11 major ISPs, their attention remains mainly on the city and the metropolitan regions. Telekom Indonesia's focus on cities has caused problems in ignored rural areas with limited access to high-speed internet and technological infrastructure (Husna & Budiman, 2023). The a need for these Internet Service Providers to innovate and upgrade their infrastructure because they find it difficult to provide reasonably priced and reliable Internet access in remote areas. This situation gains an additional factor with the launch of Starlink, making local providers to reevaluate how they operate in order to keep their customers.
Areas that are difficult or impossible for local Internet Service Providers (ISPs to reach can be accessed using Starlink's satellite Internet service. Many isolated locations in Indonesia, especially forests, countryside, and mountain regions, lack the necessary facilities needed to access the internet connection. In extreme areas such as the Arctic, Starlink has been found to offer better throughput and connectivity compared to cellular networks, with the potential for further gains when combined with cellular connectivity (Beckman et al., 2024). It often turns out that building basic equipment, such as cables and cell towers, in these places is hard and expensive. Building cable towers in remote areas is difficult due to limited infrastructure, power supply, and maintenance (Jangir & Thakur, 2014). This is further supported by Hargittai (2013), who gives a real-world example of the difficulty of building and maintaining a cell tower in a mountainous region, which requires the need for specialized equipment and the potential for unexpected incidents. Because of that many kinds of access in remote areas tend to be difficult to reach. To answer this problem, the internet can certainly help remote communities get access to service from a distance. Starlink offers internet access straight from space through a low-Earth orbit (LEO) satellite network. Network access based on LEO satellite constellations is very promising (Ma et al., 2024). Thanks to this technology, even the most remote regions can receive consistent internet access because it does not require a physical infrastructure. With the presence of Starlink, people can keep up with health and education information just as fast as those living in the big cities. people can also access public services such as birth certificate registration, licensing, or government assistance through the Internet, without having to travel far., farmers can receive real-time weather reports, and kids in remote towns can access online educational materials. The Internet can also allow people to run online businesses, sell local products more widely, and access the global market, which can increase income and economic growth in the area (Shaengchart & Kraiwanit, 2023). By establishing internet connections in these remote areas, the absence of the Internet may be overcome, and everyone will have equal access to opportunities and information, regardless of where they live.
One of Starlink's standout benefits is its competitive pricing. The service offers high-speed internet, with speeds ranging from 300 to 400 Mbps, and can be higher. The cost of Starlink Internet subscriptions is around 750,000 rupiahs per month without the need for a fiber cable optic installed. StarLink claims that both speed and latency could be at least equivalent to those currently experienced by superfast fiber optics (Fryer, 2022). In comparison, local ISPs often charge higher prices for slower internet speeds. For example like Indihome that charges 888.000 rupiahs per month with up to 300 Mbps speed and is limited by certain FUP. This affordability makes Starlink an attractive option for many Indonesians, especially those in remote areas where internet services are usually more expensive. Its low Earth orbit (LEO) satellites promise to provide high-speed, affordable internet, making it an attractive option for Developing countries in remote areas where internet services are typically more expensive (Shaengchart & Kraiwanit, 2023). Because Starlink is less expensive, more people may be able to afford high-quality internet in these areas, which contributes to an increase in access to the internet. Also, Starlink's installation is easy and doesn't require a lot of setup or expert help, which lowers the initial costs and opens it up to a much wider audience. The installation of Starlink, a satellite-based internet service, is relatively easy, making it a viable option for high-speed internet access (Yadav et al., 2022). Starlink can greatly increase internet access by providing high-speed, reasonably priced internet, helping more people to access important online services.
Luhut said that while he was aware that Starlink could provide broadband internet connectivity at lower prices, Local Internet Service Providers that have been too comfortable with providing expensive, low-quality services now need to be prepared to compete with the company. Starlink's launch in the Indonesian market indicates how urgently local Internet Service Providers need to improve their services. Currently, because of high prices and infrastructure difficulties, many local Internet Service Providers find it difficult to offer reliable Internet access in remote areas. Ironically, in Indonesia, the more underdeveloped or poorer an area is, the more expensive the internet is, while in developed areas like Jakarta, the internet is cheaper. Imansyah (2018) noted that while Indonesia's internet speeds were improving, they still lagged behind other countries, and the distribution of high-speed internet was imbalanced. These Internet Service Providers have to make efforts to expand their infrastructure in order to stay competitive. Some of these efforts include building more cell towers and fiber-optic network extensions to areas with limited service. They also need to focus on improving the quality of their services, granting faster speeds, and maintaining stable connections. With issues including longer installation times and frequent network interruptions, Indonesia's internet service clearly has to be improved (Junaidi, 2021). Lowering costs and providing affordable products are also important to attract and retain consumers. The main issue is service quality, especially in related to speed, where there is a need for improved reliable network performance and bandwidth usage (Ruth, 2015). By upgrading their services, local Internet Service Providers can compete with Starlink's offers and better serve customers.
Local Internet Service Providers can use many different kinds of strategies to effectively compete with Starlink in the market. First, they need to invest resources on infrastructure to increase service dependability and coverage. This can include expanding their network into remote and rural locations and upgrading the current infrastructure to enable more efficient and stable connections. In terms of Internet speed, Indonesia is still behind other countries. The average connection speed is still far below that of South Korea, which has 29 Mbps (Imansyah, 2018). Second, local Internet service providers can improve the quality of their services by considering newly developed technologies like 5G. The urgent need for 5G is determined mainly for large-capacity bandwidth and online transmissions (Andalisto et al., 2022). This innovation's positive and negative aspects are also mentioned; in Jakarta, 5G has superior signal and service quality than 4G. However, it is stated that the two main difficulties to achieving the best 5G performance are the restricted frequency allocation and the minimal number of installed Base Transceiver Stations (Widyasmoro et al., 2022). Third, forming partnerships could be beneficial. Local Internet service providers might accelerate the establishment of upgraded facilities and technologies by working with the government and technology organizations. The government can facilitate the expansion of broadband infrastructure to uncovered communities through a series of linked policies (Peha, 2007). These partnerships may also make it easier to obtain assets like funds and data. Last but not least, local Internet Service Providers must make use of their customers and specialty. In order to respond to the specific needs and preferences of their customers, they can develop unique marketing promotions to show the special advantages of their products over Starlink.
Summing up, the official launch of Starlink in Indonesia presents as a key solution to the problem of access to the internet in remote areas. Elon Musk's plan to provide high-quality, affordable internet via low Earth orbit satellites with the potential to greatly improve internet access for millions of Indonesians who reside in remote areas. It also facilitates remote communities' access to education, healthcare, and economic potential. The launch of Starlink will also place local internet providers in a position to improve their services, reduce their prices, and expand their area of coverage. As local Internet Service Provider make adjustments Indonesia's access to the internet will become better.
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