Licenses have been granted to consortium members for building the Palapa Ring–backbone that will connect the Eastern part of Indonesia that currently relies on satellites with the rest of the country. It is not clear how the licenses were granted and what are the fees and obligations of the license holders. Furthermore, technical and financial feasibility studies are yet to be completed. No access regimes have been developed that will govern how non-consortium members will be able to access the Palapa Ring and on what terms. There couldn’t be a worse possible way of launching such a complex, capital-intensive project that is supposed to transform the ICT infrastructure of Indonesia.
The Indonesian government imposed unreasonable burdens on the new entrant for international service in a recently issued White Paper 140. LIRNEasia highlighted the unfairness of burdening new entrants with obligations that the two existing incumbents (Telkom & Indosat) were not subjected too in comments it submitted to DGPOSTEL (one of the two regulatory bodies): 4.4 The Indonesian policymakers may have misunderstood the concept of asymmetric regulation. Asymmetric rules place additional burdens on dominant group of providers that other operators are not subjected to. In the current White Paper, many additional burdens are imposed on the new entrant that are not imposed on the two incumbents, PT Telkom & PT Indosat.