DIGIVESTASI - Telecom Industry Welcomes KPPU’s Review of Starlink Operations in Indonesia, The Indonesia Competition Commission (KPPU) has recommended that satellite-based internet services like Starlink focus on 3T regions (Frontier, Remote, Disadvantaged) rather than major cities. This suggestion has garnered positive responses from several national telecom operators, including Indosat Ooredoo Hutchison, Telkomsel, XL Axiata, and Smartfren, which appreciate the emphasis on equitable digital access.

Indosat Ooredoo Hutchison: Balanced Regulations Needed

Steve Saerang, SVP Head of Corporate Communications at Indosat Ooredoo Hutchison, stressed the importance of balanced regulations to sustain the telecom industry. He noted that local operators have made significant investments in infrastructure to expand connectivity across the country.

“Regulations should foster a healthy business climate and promote equal digital access throughout Indonesia,” said Saerang.

Telkomsel: Prioritize 3T Regions and B2B Model

Saki H. Bramono, VP Corporate Communications & Social Responsibility at Telkomsel, highlighted the potential of satellite-based services like Starlink to reach areas inaccessible to traditional infrastructure. Telkomsel, as part of the TelkomGroup, has been actively advancing digitalization through initiatives such as the Merah Putih BTS and USO BTS projects, as well as partnerships with Telkomsat leveraging Starlink technology for 3T regions.

"Telkomsel hopes that Starlink will focus on a B2B model in Indonesia, especially to enhance connectivity in remote areas and maritime regions," Bramono stated. He also emphasized the importance of a level playing field in the telecom sector, including adherence to taxation, data sovereignty, and domestic content requirements.

XL Axiata: Support for Strict Government Oversight

XL Axiata expressed support for KPPU’s recommendations, viewing them as steps toward creating a healthier telecom industry climate. According to Reza Mirza, Group Head of Corporate Communications & Sustainability at XL Axiata, the government needs to strictly monitor regulatory compliance and enhance collaboration within the telecom ecosystem.

Smartfren: Starlink’s Role in 3T Regions

Merza Fachys, President Director of Smartfren, described Starlink's presence as a positive development for accelerating internet access in remote areas. “Starlink services can help overcome barriers to internet provision in remote regions,” he said.

KPPU’s Review on Starlink Services

KPPU recently concluded its study on low-Earth orbit (LEO) satellite-based internet services, examining government policies, consumer perceptions, infrastructure readiness, and market concentration. The study, conducted from May to October 2024, involved stakeholders such as the Indonesian Parliament, government ministries, associations, businesses, and academics.

Mulyawan Ranamenggala, KPPU's Director of Economics, stated that the primary recommendations include prioritizing LEO-based internet coverage for 3T regions and fostering partnerships between LEO service providers, local operators, and SMEs. These recommendations were officially presented to the Indonesian President on November 18, 2024, with copies sent to the Indonesian Parliament and relevant ministries.

This initiative is expected to accelerate Indonesia’s digital transformation while ensuring healthy competition within the telecommunications industry.

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