Jakarta, Indonesia Sentinel — The Indonesian Business Competition Supervisory Commission (KPPU) has proposed that Low-Earth Orbit (LEO) satellites, such as Starlink, should operate exclusively in the country’s 3T regions—Tertinggal (underdeveloped), Terdepan (frontier), and Terluar (outermost). The goal is to prevent these satellite services from competing with existing telecommunication services in major cities like Jakarta.
Merza Fachys, the President Director of Smartfren, weighed in on the KPPU’s study, giving a brief yet positive response. He emphasized the importance of LEO satellite technology in expanding telecommunication services to remote and underserved areas. “With LEO satellite technology, there will no longer be a single spot that is not served by telecommunications,” he said in Jakarta on Friday, December 20, 2024.
The KPPU’s study suggests that the government should prioritize LEO satellite coverage in these 3T regions, where conventional infrastructure has not reached. The commission also recommends fostering partnerships between LEO satellite service providers, telecommunications companies, and small and medium-sized enterprises (SMEs) to ensure that national interests are taken into account.
“The government should prioritize the provision of internet services through LEO satellites in the 3T regions. Furthermore, partnerships between LEO-based internet providers and telecommunication businesses, as well as SMEs, should be a priority,” said Mulyawan Ranamenggala, Director of Economics at KPPU, in a press statement.
According to KPPU, each telecommunication service provider has specific consumer needs. Cellular internet, fiber-optic broadband, and satellite services cater to different market segments, and LEO satellites are seen as a solution to serve remote areas that other technologies cannot reach.
One of the key advantages of LEO satellite services is their ability to deliver internet access in regions that are typically underserved or inaccessible by traditional means. However, the KPPU also addressed concerns about the potential for unfair competition, especially with the development of “direct to cell” technology. This emerging technology allows satellites to connect directly to mobile phones, which could give LEO-based providers a dominant market position, potentially disadvantaging national providers without similar satellite technology.
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“The development of Direct to Cell technology could lead to LEO satellite providers becoming dominant in certain regions, resulting in unhealthy competition with national businesses that lack access to LEO satellite technology,” said Ranamenggala.
The ongoing growth of LEO satellite technology represents both an opportunity and a challenge for Indonesia’s telecommunications sector. While it promises to bridge the digital divide in remote areas, the KPPU’s recommendations highlight the need for careful regulation to balance competition and national interests.
(Becky)
