Satellite deployment strategy for an archipelagic state: The case of Indonesia

Abstract

A satellite is a vital infrastructure for national security, national telecommunications infrastructure, broadcasting services, and earth observation purposes. Indonesia has used satellites since 1976 for domestic communications purposes. As a maritime and an archipelagic country, satellite communications is very useful with Indonesia's condition. Therefore, it is important to develop new policies and regulations to increase the number of national satellite filings and orbital slots. Indonesia's current government has a Nawacita program that should be supported by the national telecommunications infrastructure, especially in using satellites. The Indonesian satellite market shows a supply and demand gap condition, where most of the satellite usage is provided by foreign satellites. There are 36 foreign satellites used in Indonesia, which is served by 16 countries. Currently, Indonesia uses a foreign satellite capacity equal to 5 to 6 foreign satellites. Based on interviews conducted on several key respondents, new policies and regulations are needed to support national orbital slots and set up new entities to manage national satellite filings. Indonesia will significantly increase its satellite use in line with the deployment of 3T (Terluar, Terdepan, dan Tertinggal) areas, and in support of economic activities such as e-commerce and digital economic aspects. If the cost of leasing foreign satellite usage can be decreased, Indonesia can save more in expenditures. These savings can be used to deploy national satellites. Based on the results of interviews conducted, the problems with Indonesian satellite operators include: a lag of investment, an inward looking orientation, and too many national satellite operators with minimum real satellites in operation. According to the respondents, Indonesian satellite deployment can be done by a special board that is called Badan Layanan Umum (BLU). Having direct government to government (G to G) cooperation between Indonesia and other countries in the satellite and orbital slot usage agreement is a strategy to increase the satellite capacity. Once Indonesia and other countries reach a consensus in using satellite filings, it can be managed by BLU. BLU will then make a satellite design until the satellite launching. Satellite operators will be selected by BLU through a tender, and the winner of the tender will deliver the satellite capacity to all users in terms of business to business.