Clarification on Satellite ISR Fees: Director General of SDPPI Kominfo Emphasizes Regulation Based on PP No. 43 of 2023

Jakarta, INTI – The Director General of Resources and Postal and Informatics Devices at the Ministry of Communication and Informatics, Ismail, clarified that the Radio Frequency Spectrum Usage Fee (BHP) for satellite services based on the Radio Station License (ISR) refers to Government Regulation Number 43 of 2023 concerning Types and Tariffs for Non-Tax State Revenue Applicable at the Ministry of Communication and Informatics (PP No. 43 of 2023).

"PP No. 43 of 2023 was enacted after a series of public consultations with stakeholders and harmonization stages with several other related ministries," he explained in Central Jakarta, Sunday (23/06/2024).

Director General Ismail stated that the imposition of BHP ISR for all satellite providers refers to the same regulation, namely PP No. 43 of 2023 and its implementing regulations. Therefore, the BHP ISR charged to Starlink is based on the same legal foundation as the BHP ISR for other satellite providers.

"The correct BHP ISR amount charged to Starlink is around IDR 23 billion per year," he emphasized in response to media reports indicating the BHP amount at around IDR 2 billion per year.

Kominfo's Role in Imposing BHP ISR

The Director General of SDPPI at the Ministry of Kominfo explained the role in implementing the imposition of BHP ISR according to the existing regulations. "The role of the Ministry of Kominfo is to calculate and determine the amount of BHP ISR for satellite providers based on the formula and indices stipulated in the regulations, both PP No. 43 of 2023 and its implementing regulations, and then bill the BHP obligations to the relevant satellite providers," he explained.

Director General Ismail emphasized that the Cellular BHP attached to the Radio Frequency Band License (IPFR) differs from the Satellite BHP in the form of ISR. According to him, the IPFR cellular BHP is exclusive, meaning one frequency band, one license holder, for one service area. In contrast, the Satellite ISR BHP is non-exclusive, so a particular frequency band is not only used by one license holder but shared with other satellite providers.

"The use of frequencies for satellites employs a frequency-sharing pattern through the utilization of different orbital slots or coverage area division, making it non-exclusive in a particular frequency band. The same applies to Starlink services," he explained.

Usage Duration and Evaluation

The Director General of SDPPI at the Ministry of Kominfo explained that ISR, according to regulatory provisions, has a shorter usage duration compared to IPFR. “While IPFR can be granted for up to 10 years, ISR can only be granted for a maximum of 5 years. Specifically for foreign satellites, it is also subject to an annual evaluation cycle of the landing rights that have been issued,” he said.

Unlike BHP ISR, including for satellites whose calculations use the formula as regulated in PP No. 43 of 2023, according to Director General Ismail, IPFR Cellular BHP, particularly in the early years of licensing, is generally determined as a result of a frequency auction mechanism where price competition occurs among prospective license holders.

Clarification on Starlink Services

To clarify media reports regarding the possibility of Starlink providing direct-to-handset or cellular phone services in Indonesia, the Director General of SDPPI at the Ministry of Kominfo emphasized that direct-to-cell services cannot simply be provided to Starlink at this time.

"Given that there are no regulations governing its provision and it has the potential to interfere with the exclusive frequency used by cellular network operators," he stressed.

Latest Statistics and Facts

According to data from the Ministry of Communication and Informatics, Indonesia has recorded a significant increase in the use of radio frequency spectrum for satellite services. In 2023, more than 50 satellite service providers applied for ISR, a 30% increase from the previous year. This indicates high demand and the importance of clear and transparent regulations.

Conclusion

The explanation from the Director General of SDPPI at the Ministry of Kominfo, Ismail, underscores the importance of correctly understanding BHP ISR and its differences from IPFR Cellular BHP. Existing regulations aim to create transparent and fair governance for all satellite service providers. Going forward, more intensive coordination and consultation with various stakeholders are needed to ensure that all rules are well understood and implemented.

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