The Ministry of Communication and Informatic (Kominfo) has proposed a huge increase in its 2025 budget, aiming for Rp20.11 trillion (US$1.2 million), up from Rp7.72 trillion allocated by the Ministry of Finance this year.
This request includes funding for building Base Transceiver Stations (BTS), essential for enhancing telecommunications infrastructure across Indonesia.
However, Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan has suggested that BTS infrastructure be replaced by Starlink satellites, manufactured by Starlink Services, LLC, a wholly-owned subsidiary of American aerospace company SpaceX of tech giant Elon Musk.
This alternative, utilizing Low Earth Orbit (LEO) technology, promises faster signal transmission speeds compared to traditional Geostationary Earth Orbit (GEO) satellites, albeit with lower coverage capabilities.
During a virtual meeting with the House’s Commission I on Monday, June 10, 2024, Communication and Informatics Minister Budi Arie Setiadi defended the budget increase, emphasizing the necessity of BTS for high-speed internet delivery via fiber optic technology.
Despite the advancements of LEO satellites, which offer high-speed signals, fiber optics remain advantageous due to their low latency and reliability, unaffected by space weather.
Kominfo’s budget proposal for 2025 includes Rp12.39 trillion for various digital infrastructure projects, underscoring the ministry’s commitment to expanding and modernizing Indonesia’s ICT landscape.
Luhut earlier said that BTS might no longer be necessary in the age of Starlink, citing its potential to reduce internet dead zones and improve services like healthcare and education, especially in remote areas.
The debate between traditional BTS infrastructure and satellite-based solutions continues as Kominfo navigates the evolving landscape of telecommunications technology in Indonesia.