Starlink Satellite Internet Set to Transform Indonesia’s Telecommunications Landscape


Idem Est Research & Advisory

15 May 2024, 16:00 AEST

Indonesia Telecom Industry Market Report forecasts 420m mobile and fixed broadband subscribers by 2031


Indonesia is on the brink of a significant telecommunications transformation with the anticipated launch of Starlink, the satellite internet service by SpaceX, which is poised to revolutionise internet access across the nation. This development is particularly timely, given the comprehensive insights provided in the latest market report on Indonesia’s telecommunications sector for 2024-2031.

The Indonesian telecommunications market, as detailed in the report, has been experiencing robust growth of 4.3% over the last seven years, with the mobile and broadband sectors expanding steadily. However, the introduction of satellite internet services like Starlink marks a new chapter in connectivity, promising high-speed internet access even in the most remote areas of the archipelago.

Satellite Internet: A Game-Changer for Archipelagic Connectivity

Indonesia, with its unique geographical layout comprising over 17,000 islands, faces significant challenges in establishing consistent and reliable internet connectivity. Traditional broadband infrastructure struggles to reach many remote areas, leaving a substantial portion of the population without effective internet access. This gap is where satellite internet services like Starlink step in, offering a viable solution by providing comprehensive coverage that bypasses the logistical challenges of terrestrial infrastructures.

The report highlights the comparison between Low Earth Orbit (LEO), Medium Earth Orbit (MEO), and Geostationary Orbit (GEO) satellites, with LEO satellites like those used by Starlink offering lower latency and higher speeds. This technology is not just about bridging the digital divide but is also critical for Indonesia’s disaster response capabilities, enabling effective communication and management in crisis situations.

Starlink’s Strategic Entry into Indonesia

Starlink’s entry into the Indonesian market is expected to be a disruptor, given its potential to provide unprecedented internet speed and reliability across the country. The service is slated to begin in the coming months and is seen as a significant leap forward in achieving Indonesia’s digital aspirations.

“Idem Est Research and Advisory forecasts nearly 100,000 satellite Internet subscribers by the end of 2025 and 3.8m by 2031. Starlink already has nearly 100,000 subscribers in Asia with the Philippines leading the way,” says Landry Fevre, Director of Idem Est Research & Advisory.

The deployment of Starlink in Indonesia aligns with the broader goals of the country’s digital economy framework, which aims to enhance digital access and literacy, boost economic growth, and improve public services through better connectivity.

Market Implications and Future Prospects

The introduction of Starlink is anticipated to intensify competition within the Indonesian broadband market, compelling existing providers to innovate and potentially adjust their pricing strategies. Moreover, satellite internet will play a crucial role in supporting Indonesia’s growing number of internet users, which is expected to surge with the increasing penetration of digital technologies.

As the market adapts to this new technology, the implications for rural development are profound. Satellite internet can support various applications including telemedicine, online education, and e-commerce, which are pivotal in rural and underserved regions.

The advent of Starlink and other Low Earth Orbit (LEO) satellite systems poses significant challenges to traditional mobile tower companies. These satellite networks, by offering high-speed internet access from space, compete directly with terrestrial-based networks in delivering broadband services, especially in underserved or remote areas.

Mobile tower companies have traditionally invested heavily in physical infrastructure—such as cell towers and fibre-optic cables—to expand and enhance network coverage. This model necessitates significant capital expenditure and ongoing costs for maintenance and upgrades. This capability allows them to bypass many of the physical and regulatory hurdles that mobile tower companies face, such as acquiring land rights, constructing tower sites, and navigating diverse geographic and political landscapes.

For regions with sparse populations or difficult terrain, the appeal of satellite internet is even more pronounced. In such areas, the cost of building and maintaining traditional mobile towers can be prohibitively expensive, and the return on investment is often uncertain. LEO systems can deliver high-speed connectivity to these areas without the need for extensive ground infrastructure, potentially siphoning customers from mobile networks that have traditionally served these remote locations.

Moreover, the entry of LEO systems into the market accelerates the shift towards more integrated service offerings that blend terrestrial and extra-terrestrial networks. Mobile tower companies may find themselves compelled to form strategic partnerships or innovate new technologies that can integrate with satellite systems to remain competitive.

The challenge for mobile tower companies will be to adapt to this new competitive landscape. They may need to pivot their business models, focus on delivering ultra-high-speed services in urban areas, or explore new revenue streams such as ground-based satellite infrastructure, data hosting or specialized communication services for industries like mining or energy that can benefit from hybrid connectivity solutions.

“Idem Est Research forecasts that mobile subscribers will reach nearly 400m million by 2031, while the fixed broadband market penetration continues to remain below that of neighbouring countries. The telecommunications industry is expected to maintain revenue growth momentum, with an average growth rate of 3.4% from 2023 to 2030,” says Landry Fevre, Director of Idem Est Research & Advisory.


BizNet, Centratama, DigitalBridge, EdgePoint, FiberStar, Gihon, GoJek, IBS Towers, IndiHome, Indosat, Kabel MNC Play, Link Net, Mitratel, MyRepublic, Protelindo, Smartfren, Telkom, Telkomsel, Tokopedia, Tower Bersama, Tri Indonesia, XL Axiata

Download the full report:

Starlink Company Profile:

About Idem Est Research Advisory
Idem Est Research and Advisory is a boutique telecommunications and digital infrastructure market research and advisory. Idem Est Research provides leading telecoms research helping our clients stay updated on the latest telecoms sector and digital infrastructure developments. The reports provide analyses of mobile and broadband markets, capital expenditure, forecasts, key telecom trends and thematic such as 5G and telecoms digital infrastructure, as well as other statistics of the telco industry.

Our independent approach allows us to place the trends and drivers fully into context and analyse the industry from different, unbiased perspectives. Alongside the facts and figures, Idem Est Research draws on three decades of experience to provide incisive commentary and analysis. This brings visibility to the business drivers, challenges, decision-making and future direction of the telecoms sector.
To learn more, visit

Contact Information:
For media inquiries, please contact:
Landry Fevre

SOURCE: Idem Est Research & Advisory

This release was published on openPR

Select your currency
AUD Australian dollar
EUR Euro