PRESS RELEASE

Navigating the new era of Telecommunications: Starlink and the future of connectivity in Indonesia

Jakarta, March 12, 2025-PT Bahar Konsultan Indonesia (Bahar) and PT Alita Praya Mitra (Alita) highlighted the potential of Starlink, a global player in Low Earth Orbit (LEO) satellite technology, to bridge the digital divide in Indonesia. The presence of Starlink in Indonesia is expected to open up new opportunities to improve connectivity access, especially in the 3T region (Tertinggal, Terdepan, dan Terluar), which can positively impact economic growth and community productivity.

According to the report of the Indonesian Internet Service Providers Association (APJII) 2024, internet penetration in Indonesia reached 79.5 percent. However, more than 60 million people still lack stable internet access.

In addition, the digital divide continues to affect the dynamics of society in Indonesia. In the 3T region, connectivity remains a significant challenge.

Data from the Ministry of Communications and Digital (Komdigi) shows that over 12,500 villages still lack quality internet access. On the other hand, the Indonesian telecommunications market is expected to grow 7.5 percent per year, with the broadband market reaching USD 11 billion by 2025.

A recent study conducted by Bahar and Alita highlighted that the existence of LEO satellites such as Starlink not only complements existing network infrastructure but also presents new challenges for the domestic telecommunications industry ecosystem. Therefore, an interdisciplinary and responsive regulatory approach is needed to maintain healthy competition and support sustainable industry growth.

Regulation and Industry Dynamics

Wahyuni Bahar, Managing Partner of Bahar, emphasized the urgent need to adjust the regulatory framework to face this new era of telecommunications. "The existence of LEO satellites is highly anticipated and will complement telecommunications networks and services. Regulatory adjustments based on an interdisciplinary and responsive approach are crucial to ensure fair competition and sustainable development of the industry."

Meanwhile, Teguh Prasetya, CEO of Alita Praya Mitra, explained that technological innovations such as those brought by Starlink must align with national policies. "The presence of Starlink in Indonesia adds to the dynamics of the telecommunications industry and provides opportunities to improve access to high-speed connectivity, especially in the 3T area," he said, reassuring the audience about the government's role in regulating technological innovations.

However, Teguh stressed that the government, as a regulator, must ensure that the integration of this technology goes hand in hand with national policies, including aspects of business competition, data security, and strengthening local industries.

Strategic steps for the future

Bahar and Alita agreed to emphasize that the Indonesian telecommunications ecosystem must take strategic steps to adapt to the presence of LEO satellite technology. Some steps for the future include:

• Enhance industry collaboration to create a more inclusive and globally competitive ecosystem.
• Encourage investment in satellite-based infrastructure and services to expand network coverage.
• Adjust business policies to ensure a balance between innovation and sustainability of the domestic industry.

With the right approach, the Indonesian telecommunications industry can leverage Starlink's presence as a momentum to drive more inclusive and highly competitive growth in the global arena.

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About Pt Bahar Konsultan Indonesia PT Bahar Konsultan Indonesia is a law and business consulting firm committed to supporting innovation and industry growth through a strategic regulatory approach.

About PT Alita Praya Mitra PT Alita Praya Mitra is a telecommunications and smart solutions provider focused on developing digital infrastructure to improve connectivity in Indonesia.