Heaptalk, Jakarta — The Business Competition Supervisory Commission (KPPU) emphasized that its team will oversee Starlink, a US satellite-based internet service provider operating in Indonesia. As reported by Kompas.com, this aims to create healthy competition among businesses in the internet service provision sector.
According to KPPU Commissioner Hilman Pujana, the emergence of technology is inevitable, including in internet service provision technology. Therefore, the commission asked the regulator to apply equal treatment to all business actors including Starlink in terms of licensing, costs and other aspects.
“When new players enter the market, it becomes KPPU’s domain to monitor their market behavior. This applies not only to new players but also to existing ones,” Hilman said after a focus group discussion (FGD) on the Impact of Starlink’s Presence in Indonesia at the KPPU office in Jakarta (05/29), as quoted by Kompas.com.
KPPU’s oversight extends to the behavior of all business players in the market, including new and existing ones. Starlink’s presence as a new player in Indonesia’s internet service industry is expected to maintain a conducive business climate in this sector and provide more options for the public.
Fully complying with existing regulations
Meanwhile, Starlink Indonesia‘s Legal Team representative, Krishna Vesa, who attended the discussion, has reiterated the company’s commitment to operating within the bounds of the law. Starlink’s licensing and legal entity status are fully compliant with regulations, and all necessary infrastructure is in place in Indonesia. Krishna also refuted any claims of predatory pricing, asserting that Starlink’s promotional activities are both lawful and standard in the industry, as cited by Kontan.
Participating in the discussion, Professor Ine Minara S. Ruky from the Faculty of Economics and Business at the University of Indonesia (FEB UI) argued that setting low prices with a 40% promotion by Starlink does not constitute predatory pricing. Predatory pricing refers to a business strategy aimed at eliminating competition.
“Predatory pricing means setting a price below cost to achieve a monopoly position after driving all competitors out of the market,” said Ine, as cited by Kompas.com. Setting lower prices for a limited time is considered promotional pricing, which is normal in business. She concluded that new players typically implement penetration pricing for a few months or weeks.
