Starlink Still Pays Taxes Like Other Operators

Elon Musk criticized the competing chatbot (photo: X @elonmusk)

JAKARTA - Minister of Communication and Information (Menkominfo) Budi Arie Setiadi said that Starlink, a satellite-based internet service, does not receive tax incentives from the government, and is still obliged to make payments as other operators do.

"Anyway, what is charged to cellular operators or telecommunications operators in Indonesia must also be charged to Starlink, so that the level of playing field is the same," said Budi Arie, quoted from Antara, Sunday, May 19.

Therefore, Budi continued, if other operators pay value added tax (VAT) and income tax (PPh), then Starlink will also be given a similar burden.

"There is no (special incentive). Only Starlink wants to try in Indonesia, (we said) okay," said Budi.

On this occasion, Budi explained that Starlink services can help Indonesia to overcome internet problems faced by 3T or underdeveloped, frontier, and outermost areas.

According to Budi, Indonesia has geographical challenges to meet the needs of access to the internet for its people.

As an archipelagic country, he said, alternative technology is needed to answer these problems, one of which is the use of satellites.

"If (the area) is the outermost, if you use cables, it is impossible. If you use other technology, it's less. Yes, use satellite," said Budi.

Budi said that currently, the government is focusing on Starlink to serve the education and health sectors. This is what resulted in Starlink being launched at a health center located in Denpasar, Bali.

"Meanwhile, education and health, we direct them there," said Budi Arie.

Tesla Inc. CEO and SpaceX Elon Musk arrived at I Gusti Ngurah Rai Airport, Bali, to inaugurate the launch of Starlink, a satellite-based internet service, with President Joko Widodo which is scheduled to be located in Denpasar, Bali, Sunday afternoon.

The ministers who were also present at the launch of Starlink were Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Health Budi Gunadi Sadikin, Minister of Communication and Information Budi Arie Setiadi, and Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono.