No Tesla factory? Satellites will do for now as Indonesia courts Musk

Jakarta invites billionaire to help with restoration of mangrove forests

- Hariz Baharudin, Wahyudi Soeriaatmadja

The launch of billionaire Elon Musk's internet service in Indonesia is the culmination of the archipelago's multi-year courtship of the Tesla founder, which has seen its focus shift from electric vehicles (EVs) to satellites and sustainability.

The pivot in their relationship shows that while investment plans can sometimes fail to bear fruit, Indonesia remains flexible about other forms of collaboration with its partners, a sign of how eager the country is in transforming the economy and achieving higher development status.

Mr Musk, who also founded the world's largest satellite operator SpaceX, arrived in Bali on May 19 to launch internet service Starlink for Indonesia's health sector.

Starlink, which owns around 60 per cent of the roughly 7,500 satellites orbiting Earth, would help secure internet access to millions in far-flung parts of Indonesia, he said.

It was launched at three Indonesian health centres - two in Bali and one on the remote island of Aru in Maluku, which is in the east of the archipelago.

A video screened at the launch showed how faster internet speed enabled the input of data to better tackle health challenges such as stunting and malnutrition. Reports from doctors said internet speed increased more than 20 times with Starlink.

Indonesia is the third country in Asean to which Starlink has extended its operations, after Malaysia in 2023 and the Philippines in 2022.

The government has also invited Mr Musk to contribute to Indonesia's restoration of mangrove forests, which help trap large amounts of carbon dioxide, the main greenhouse gas, and are potential sources of carbon credits that businesses can buy to offset their own carbon footprint.

Indonesia believes that Mr Musk and Tesla, which says that it is focused on accelerating the world's transition to sustainability, can support the country's aim to plant more of the trees.