Bali. Elon Musk's Starlink Internet service was officially launched in Bali on Sunday, but Communication and Informatics Minister Budi Arie Setiadi disclosed that several aspects of its launch in Indonesia are still under review. These include concerns related to the network operation center (NOC) and taxation.

"To maintain fair competition among all mobile operators, the ministry is carefully examining various aspects of Starlink's introduction," Setiadi said during a press conference at the World Water Forum (WWF) Media Center on Sunday.

Issues being scrutinized include the establishment of the NOC, customer service standards, and taxation policies, including value-added tax (VAT) and income tax. Setiadi emphasized that all internet operators, including Starlink, should fulfill their tax obligations.

One crucial matter being discussed by the Indonesian government is ensuring that Starlink's NOC operates within the country's jurisdiction. Minister Budi is particularly wary of the possibility of offshore NOCs being exploited for illicit activities like online gambling and pornography.

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The government insists on the NOC being located in Indonesia so that regulators can take direct action if Starlink violates domestic regulations. He said that while technologically Starlink can address Indonesia's internet coverage shortcomings, national sovereignty must not be compromised.

Budi added that they also do not want Starlink Internet service providers to dominate the market and neglect their responsibilities. Satellites moving into other countries are also feared to pose a threat to domestic user data. 

"This is dangerous (regarding domestic user data) because satellites moving into other countries could access our data, and of course, we don't want that to happen. So, let's work together and seek support. We don't want Indonesia to merely become a market, neglecting the protection of our citizens, especially those who need our services and access," said Budi.

Local internet providers rely on base transceiver stations to transmit signals and are unable to reach outer islands because they have limited coverage. According to Budi, Starlink’s satellites, which remain in low orbit, will help them deliver faster internet with nationwide coverage.

Health Minister Budi Gunadi Sadikin said of the more than 10,000 clinics across the country, there are still around 2,700 without internet access. “The internet can open up better access to health services as communication between regions is said to be easier, so that reporting from health service facilities can be done in real-time or up to date,” he said.

Indonesia under Jokowi has promoted the development of the digital technology and information sectors, aiming to achieve the government’s Golden Indonesia 2045 Vision. The country hopes to become one of the world’s top five economies with a GDP of up to $9 trillion, exactly a century after it won independence from Dutch colonizers.

Elon Musk Launches Starlink Satellite Internet Service in Indonesia

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