{
    "success": true,
    "data": {
        "id": 1753774,
        "msgid": "indonesias-satellite-operators-invest-selectively-amid-exchange-rate-pressures-and-starlink-1779542923",
        "date": "2026-05-21 05:30:58",
        "title": "Indonesia's Satellite Operators Invest Selectively Amid Exchange Rate Pressures and Starlink",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Regulation",
        "summary": "Indonesian satellite operators are tightening operations and adopting selective investment amid a weakening rupiah and Starlink's rapid expansion. With most satellite construction, launch and maintenance costs denominated in dollars, a weaker rupiah has increased capital expenditure, prompting domestic players to prioritise existing assets and strategic partnerships. Regulators are scrutinising foreign operators to curb predatory pricing and safeguard digital sovereignty.",
        "content": "<p>Domestic satellite operators in Indonesia are tightening their\noperations and becoming more selective in committing new investments as\nof Thursday, 21 May 2026. The efficiency measures are driven by a double\nsqueeze: the rupiah\u2019s weakness against the US dollar and the massive\nexpansion of foreign satellite internet service providers such as\nStarlink.<\/p>\n<p>The increasingly competitive market is forcing local operators to\nadjust their business strategies to safeguard profitability. High\noperating costs denominated in dollars are not commensurate with price\npressures in the domestic retail market.<\/p>\n<p>Most components for the construction, launch, and maintenance of\nsatellites require funding in US dollars. When the rupiah weakens,\ncapital expenditure burdens automatically grow substantially for local\nplayers.<\/p>\n<p>Conversely, Starlink\u2019s entry into Indonesia brings large-scale\ntechnological disruption. The low Earth orbit satellite service offers\nhigh speeds with low latency directly to end consumers.<\/p>\n<p>This competition has intensified after concerns about pricing\nstrategies in the market emerged. The government continues to monitor\nthe movements of global operators to ensure fair business\nconditions.<\/p>\n<p>Regarding the potential for internet selling at loss or predatory\npricing by foreign satellite internet providers, Wayan Toni Supriyanto,\nDirector General of Posts and Informatics Administration at the Ministry\nof Communications and Information Technology (Kemenkominfo), issued a\nfirm statement: \u201cKemenkominfo has begun scrutinising Starlink to ensure\nthere are no predatory pricing practices that harm the local\ntelecommunications ecosystem.\u201d<\/p>\n<p>Strategies for Local Operators to Survive<\/p>\n<p>To confront this situation, domestic telecommunications companies are\nnow opting to maximise existing infrastructure rather than construct new\nassets. The primary focus is redirected to market segments not yet\nreached by terrestrial fibre networks.<\/p>\n<p>Strategic partnerships have also become the primary option to widen\nreach without overburdening company balance sheets. The concept of Joint\nOperating Arrangements (Kerja Sama Operasi) is now widely adopted by\ndomestic bandwidth providers.<\/p>\n<p>The following is a comparison of investment focus between local\nsatellite operators and foreign satellite service providers in the\nIndonesian market today:<\/p>\n<p>The following is a comparison of investment focus between local\nsatellite operators and foreign satellite service providers in the\nIndonesian market today:<\/p>\n<p>Through this mapping of strategies, local players are endeavouring to\nsecure corporate market niches that require services with strict\nregulatory assurances. The move is seen as safer in mitigating global\nfinancial risks.<\/p>\n<p>Regulations Related to Foreign Operations<\/p>\n<p>Indonesia has in fact imposed a number of restrictions on foreign\nsatellite operators wishing to enter the domestic market. One example is\nthe requirement to establish interconnection cooperation with local\ntelecommunications operators.<\/p>\n<p>Interconnection schemes aim to ensure data traffic from foreign\nsatellites remains routed through domestic network gateways. This is\nimportant for safeguarding digital sovereignty and national data\nsecurity.<\/p>\n<p>Some key regulatory points that foreign satellite operators must meet\ninclude:<\/p>\n<ul>\n<li><p>Must establish a legal entity or appoint an official\nrepresentative in Indonesia.<\/p><\/li>\n<li><p>Must interconnect with local operators such as Telkom\nGroup.<\/p><\/li>\n<li><p>Must comply with all tariff terms and landing rights stipulated\nby Kemenkominfo.<\/p><\/li>\n<li><p>Must guarantee the protection of consumers\u2019 personal data in\naccordance with applicable law.<\/p><\/li>\n<\/ul>\n<p>This tightening of oversight is expected to provide space for\ndomestic satellite operators to calibrate their business. Adjusting\ncapital expenditure strategies is seen as a key for local\ntelecommunications corporations to survive amid global economic\nuncertainty.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesias-satellite-operators-invest-selectively-amid-exchange-rate-pressures-and-starlink-1779542923",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}