Starlink teams up with Indonesian ISPs to improve rural connectivity

Nearly three weeks after applying for an ISP license in Indonesia, SpaceX's Starlink signed a collaboration agreement with the Indonesian Internet Service Providers Association (APJII) to improve Internet access in the country, particularly in rural areas. 

According to APJII Chairman Muhammad Arif, Starlink will focus on improving connectivity in underdeveloped regions.

"The main focus is to provide stable and affordable access for people throughout Indonesia, especially in areas limited by infrastructure availability and high implementation costs," Arif said in a statement given to local media.

Based on the latest figures released by APJII in January, Internet penetration in Indonesia has reached 79.5% in 2024. In rural areas, 74% of people are online but they only contribute 30.5% to the total Internet usage.

The partnership between the two parties involved the integration of Starlink's Internet services with existing infrastructure, which will allow local ISPs to expand their reach. Starlink, on the other hand, can use the terrestrial infrastructure to reach more people across Indonesia.

According to the state-run Antara news agency, Communications and Informatics Minister Budi Arie Setiadi welcomed Starlink's collaboration with APJII saying, "It will be helpful to various regions in Indonesia, for instance, the eastern Indonesia region."

Related:Starlink applies for an ISP license in Indonesia

Setiadi said Starlink has fulfilled almost all requisites to operate in Indonesia. He added that the company will be allowed to enter the market as long as it follows local regulations and pays its spectrum fees.

Besides applying for an ISP license, Starlink has already obtained the necessary VSAT permit to run the VSAT hub and station equipment it has built. As a condition of obtaining the two permits, Starlink must perform operational testing in the new capital city of Nasutra. Setiadi revealed that Starlink will begin the trials in May.