Jakarta. Indonesia's antimonopoly watchdog has defended the low prices offered by satellite internet provider Starlink, clarifying that they do not constitute "predatory pricing."

Elon Musk's Starlink is offering a 40 percent discount on its VSAT (Very Small Aperture Terminal) devices in Indonesia until June 10, reducing the price from Rp 7.8 million ($480) to Rp 4.68 million. The Indonesian Competition Commission (KPPU) said that Starlink's pricing strategy is promotional rather than predatory, which is a common and acceptable business practice.

"Predatory pricing is not just about low prices. Media reports often label low prices as predatory pricing, which is incorrect," said Eugenia Mardanugraha, a member of the KPPU, on Wednesday.

Predatory pricing refers to the practice of selling products below cost to eliminate competitors, a strategy more complex than simply offering low prices. Eugenia emphasized that this concept applies to all products, not just Starlink's. Lower prices alone do not automatically indicate predatory pricing.

Ine Minara Ruky, an economist from the University of Indonesia, explained that predatory pricing is a strategy aimed at driving competitors out of the market by setting prices below cost to gain a monopoly. "However, the company must then be able to recover the losses incurred during the predatory period by charging very high, monopoly prices to consumers. Achieving this in practice is very difficult," she noted.

In the digital industry, predatory pricing is rare. According to Ine, competition in this sector is driven by innovation and tends to be disruptive, allowing innovative players to replace established ones. Displaced companies often respond by researching and developing new products to compete with the market leaders.

Ine stated that achieving a monopoly through superior innovation is a legitimate business practice. "To compete more effectively, companies should focus on improving service quality, stability, and download speeds. Compete on quality," she advised.

Elon Musk officially launched Starlink's internet service in Indonesia on May 19 in Bali. Customers across the country can access Starlink services starting at Rp 750,000 per month, which is more than twice the average amount Indonesians typically spend on internet service.

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