DIGIVESTASI - The Indonesian government has been urged to prepare for the potential entry of Elon Musk's satellite-based internet service, Starlink, which could offer free direct-to-cell connectivity in Indonesia. Starlink plans to provide emergency service access to mobile phones worldwide, including in Indonesia, at no cost. This service is a result of collaboration with T-Mobile and is expected to be launched in the fall of this year, around September 2024.

Several telecommunications experts have warned the government that Starlink’s free emergency cellular service could pose a threat to local service providers, potentially disrupting competition in the national telecommunications industry. Ian Yosef M. Edward, Head of the Center for Policy and Regulatory Studies at ITB, pointed out that the government might not receive tax revenue if this service is provided for free in Indonesia. "If [Starlink] is given for free, it will certainly have an impact. From a tax perspective, there will be no revenue. When it's free, it’s difficult to demand service levels," Ian stated to Bisnis on Wednesday (September 3, 2024).

Ian emphasized that the Ministry of Communication and Information Technology (Kemenkominfo) as the regulator must closely monitor the development of Starlink’s emergency service. He stressed that any business model leading to a monopoly or unhealthy competition must be avoided. "Business players must be ensured a level playing field to compete fairly," he said.

Heru Sutadi, Executive Director of the Indonesia ICT Institute, also urged Kemenkominfo to ensure that all aspects of the direct-to-cell emergency service, including frequency and usage rights fees (BHP), are carefully considered. "The key point is equal treatment," said Heru. He also highlighted the importance of creating a level playing field for all telecommunications and internet service providers, including Starlink, to maintain healthy competition in the industry.

Agung Harsoyo, a telecommunications expert and lecturer at ITB’s School of Electrical Engineering and Informatics, noted that the licensing process for Starlink’s free direct-to-cell service might take a long time from the regulator. However, he believes that Starlink’s emergency service is not intended for commercial purposes, though it still needs to be regulated to prevent misuse. Agung added that emergency calls via Starlink should include interconnection with other operators and local governments responsible for handling emergency situations.

Meanwhile, the Indonesian Internet Service Providers Association (APJII) stated that they would monitor Starlink’s free direct-to-cell emergency service. They also called on Kemenkominfo to thoroughly oversee the service. "We will monitor [Starlink's free direct-to-cell service] because this will impact our members, and Kemenkominfo must also look at this comprehensively," said APJII Secretary General Zulfadly Syam. Zul emphasized that the business model of this free emergency service needs to be scrutinized as it could potentially disrupt the telecommunications ecosystem in Indonesia.

Zul added that APJII suspects that local internet players' businesses could be affected, although they have yet to see the details of the packages and limitations offered by Starlink’s free emergency service. Going forward, APJII will study the service further once it is available abroad. On the other hand, Zul acknowledged that this emergency service could be highly beneficial in natural disaster situations, such as a megathrust earthquake. However, if the service is marketed commercially, it could threaten the telecommunications ecosystem, which has been built with significant investment by local players.

Previously, the Director of Telecommunications at Kemenkominfo, Aju Widya Sari, stated that Kemenkominfo would evaluate Starlink’s offer of free internet service in Indonesia. "We will definitely evaluate it. We will call Starlink to explain why they are implementing [free direct-to-cell service in Indonesia] because there must be an effort to maintain business competition," Aju said after an event at the Kemenkominfo building in Jakarta on Friday (August 30, 2024). Aju added that the operational mechanism of internet services in Indonesia must continue to follow market rules, including in promotions to the public.

However, Kemenkominfo will continue to evaluate the performance and pricing of internet services annually, including those offered by Starlink, to ensure that there is no unhealthy competition. "We will evaluate all operators to see if there are any indications of unfair competition, particularly regarding tariffs," she said. Aju explained that any indication of unfair competition will be prevented through tariff evaluations, and if necessary, the relevant operators will be called upon to adjust their tariffs to keep market competition healthy. "In essence, the government will not intervene in the market, but tariff evaluations will be conducted routinely," she emphasized.

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