Starlink Halts New Signups in Indonesia, Raising Doubts Over Commitment to Remote Areas

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JAKARTA, Investortrust.id — Starlink’s decision to temporarily stop accepting new customers in Indonesia has raised concerns about the satellite internet provider’s market focus and its commitment to reaching underserved regions.

While the service is technically designed to provide high-speed internet to remote and underdeveloped areas, it has instead gained more traction among urban users, according to a digital economy expert.

“Demand for services like Starlink is naturally higher in urban centers where people have more capital and greater purchasing power compared to those in 3T regions,” said Nailul Huda, Director of Digital Economy at the Center of Economic and Law Studies (CELIOS), referring to the Indonesian government’s classification for frontier, outermost, and underdeveloped areas.

Starlink officially began commercial operations in Indonesia in 2024, marketing itself as a provider of fast, satellite-based internet that bypasses the need for fiber-optic infrastructure. However, its premium pricing has kept it out of reach for many rural users—an issue that undermines the platform’s suitability for the very areas it was expected to serve.

“Starlink's price point is significantly higher than other internet packages on the market,” Huda said.

He argued that Starlink’s economic model naturally leans toward affluent, urban markets rather than remote, infrastructure-poor regions. “Many urban residents are turning to Starlink because they feel fiber networks are too slow and want faster alternatives,” he added.

Given these dynamics, Huda suggested that the goal of equitable internet access in rural Indonesia would be better served by a state-owned enterprise (SOE) with a public mandate. “Unlike Starlink, a state-owned company would be tasked with expanding network coverage rather than chasing profits,” he said.

Government Response

The Ministry of Communication and Digital Affairs (Kemenkomdigi) confirmed that Starlink’s decision to pause new subscriptions was a business call made by the company, citing capacity constraints.

“The decision to temporarily halt new customer signups was made solely by Starlink,” said Wayan Toni Supriyanto, Director General of Digital Infrastructure at the ministry.

Wayan explained that the current network capacity available for Indonesia has reached its limit. To resolve this, Starlink is working to expand its bandwidth using the E-band frequency, which facilitates communication between ground gateways and satellites.

He added that the government is also conducting a review of all regulatory obligations included in Starlink’s landing rights license issued earlier.

As of now, there is no official timeline for when the company will reopen registration for new customers, although some e-commerce platforms have listed September 2025 as a potential date for resumption.