Starlink’s Indonesia pricing is not predatory: antimonopoly agency

The Indonesian Competition Commission (KPPU) has reportedly ruled that Starlink’s aggressive discounts on its VSAT terminal kits and subscriptions do not amount to predatory pricing.

According to government news agency Antara, Starlink – which officially began offering LEO satellite bradband services in Indonesia on May 19 – has been offering a 40% discount on its VSAT devices in Indonesia until June 10. The devices, which normally retail at IDR7.8 million (US$480), are being offered at IDR4.68 million.

he KPPU has been fielding allegations that this constitutes predatory pricing and unfair competition. According to media reports, the Indonesia Satellite Association (ISSA) has complained that Starlink’s VSAT pricing is negatively impacting players in both the enterprise and retail VSAT segments.

ISSA also claims Starlink’s monthly subscription packages are predatory. A monthly subscription to Starlink starts at IDR750,000 per month. While that’s more than twice the average amount Indonesians typically spend on consumer internet services, it’s far below unlimited VSAT service packages offered by existing players, which are in the ballpark of IDR 3.5 million, ISSA says.

However, following a closed-door focus group discussion on the matter on Wednesday, the antimonopoly watchdog said the VSAT prices were promotional, not predatory, the report said.

KPPU member Eugenia Mardanugraha told Antara that predatory pricing involves an active strategy to sell products below cost to eliminate competitors and establish a monopoly. “Predatory pricing is not just about low prices,” she said.

According to Indonesian national newspaper Kompas, KPPU Commissioner Hilman Pujana said it will continue to monitor Starlink’s activities in the market to ensure it plays by the rules.