Heaptalk, Jakarta — Starlink Indonesia is offering a 40% price discount, approximately Rp3 million, on hardware purchases until June 10, 2024. This offer has sparked suspicions of predatory pricing practices against local internet service providers (ISPs).
On its official page, Starlink offers hardware prices reduced from Rp7.8 million to only Rp4.68 million. Various monthly service packages start from Rp750,000 for the residential category and Rp990,000 for the roaming category, such as in recreational vehicles (RVs), nomads, and caravans. The boats package is aimed at maritime, emergency response, and mobile business, with monthly services starting from Rp4.3 million and hardware priced at Rp43.7 million.
Starlink Indonesia’s Legal Team representative Krishna Vesa denied all allegations of predatory pricing, asserting that Starlink’s promotional activities are both lawful and standard in the industry. The discounted pricing is also only temporary.
“There is absolutely no predatory pricing. The promotion carried out by Starlink is standard and permitted by law,” Krishna said in Jakarta (05/29) as quoted by Katadata. The company is also committed to operating within the bounds of the law in Indonesia. Starlink’s licensing and legal entity status are fully compliant with regulations and all necessary infrastructure is in place in the country.
Below the cheapest local hardware price
On the other hand, the Indonesian Satellite Association (ASSI) highlighted that the low prices offered by Starlink are unreasonable. “Starlink’s prices are cheaper compared to local players. For example, the cheapest local price for unlimited VSAT is Rp3.5 million while Starlink’s price is Rp750,000. You can calculate the price difference. Additionally, the cheapest local hardware price is around Rp9.1 million, and Starlink’s promotional price is Rp4.6 million,” said Sigit Jatipuro, Secretary General of ASSI, as cited by CNN Indonesia.
Meanwhile, Professor Ine Minara S. Ruky from the Faculty of Economics and Business at the University of Indonesia (FEB UI) stated that setting low prices with a 40% discount by Starlink does not reflect predatory pricing practices. Ine explained that 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,” she explained. However, in Starlink’s case, she has not observed any tendencies towards predatory pricing. According to her, setting lower prices for a limited time is considered promotional pricing, which is normal in business. New players typically implement penetration pricing for a few months or weeks.
