Jakarta, INTI - The Indonesian Satellite Association (ASSI) revealed that Elon Musk's Low Earth Orbit (LEO) satellite service, Starlink, has captured 45% of the Indonesian satellite market share.
Launched in Indonesia in May 2024, Starlink, with its advantages in latency and speed, has shifted the Indonesian satellite market, which has been dominated by Geostationary Earth Orbit (GEO) satellites for decades.
ASSI Chairman Risdianto Yuli Hermansyah said that Starlink's LEO satellites have grown rapidly in a short time due to meeting market expectations. LEO satellites can provide satellite-based internet services starting at around Rp700,000 per month, significantly cheaper than GEO satellites.
"In terms of capacity, the ratio between GEO and LEO satellites (Starlink) is around 60:40. If possible, the market share could be around 55:45," Risdianto said in Jakarta on Tuesday, May 5.
Customers Prefer Fast and Portable Internet Services
Risdianto said that people currently expect satellite internet services that are fast, lightweight, portable, and simple to install. Starlink can fulfill these expectations. Meanwhile, GEO service installation is more time-consuming and requires technical support. However, Risdianto said that the market share for GEO satellites remains strong, especially for broadcasting in remote areas.
"GEO satellites are still dominant for broadcasting and backhaul," Risdianto said.
Risdianto denied that GEO satellites are experiencing a decline in market demand. The GEO satellite business remains stable. Indonesian satellite players currently have the potential to generate revenue from new businesses outside of connectivity, such as satellite ecosystems and IoT.
He stated that growth in the satellite connectivity-based IoT ecosystem is currently booming. "When it comes to satellites, it's still about connectivity, but growth in areas like IoT and earth intelligence is also increasing," Risdianto said.
Hit by the Rupiah Exchange Rate
In addition to facing challenges from global satellites like Starlink, Risdianto said, the satellite industry is also currently under pressure from the weakening rupiah exchange rate, which has reached Rp17,400. This is because operational costs and capital expenditures for satellite construction are currently still denominated in dollars.
"Fluctuations are impacted, profitability is affected, and expansion is delayed," said Risdianto.
To address global pressures and the rupiah exchange rate, Risdianto said, the satellite industry paradigm must shift from conventional GEO-based services focused on connectivity to integrated satellite-based solutions across various sectors.
Conclusion
The Indonesian Satellite Association reports that Starlink's LEO satellite service has captured approximately 45% of the satellite market share in Indonesia since its launch in 2024. Its advantages of low latency, high speed, and lower service prices enable Starlink to disrupt a market previously dominated by GEO satellites. The national satellite industry is also facing pressure from the weakening rupiah, as satellite operational and development costs remain dependent on the US dollar.
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