Synopsis
Indonesia is advancing towards commercializing its space activities by inviting private sector involvement and foreign investment. The research aims to identify legal obstacles that need addressing in the upcoming government regulations for this commercialization. The study utilizes normative legal research methods with primary and secondary legal materials.
Global Commercialization of Space Activities
Historically dominated by state governments, space activities are now increasingly involving private actors. The commercialization of space activities is characterized by private capital, market-based viability, and primary management by the private sector.
Indonesia’s Space Ambitions
Indonesia’s unique geographical position, being a vast archipelagic nation on the equator, is ideal for satellite launches. The demand for telecommunication satellites has grown, especially during the Covid-19 pandemic. However, government funding for space activities in Indonesia is minimal, prompting the need for private investment. The country plans to build a space port in Biak, Papua, leveraging its equatorial location.
Key Regulatory Barriers Identified
Financing/Funding
Financing space ventures, given their high risk and cost, is challenging. Legal uncertainties and varying transaction laws across countries add to the complexity. A uniform system like the Space Protocol under the Cape Town Convention, which Indonesia has not ratified, could potentially alleviate these challenges by providing legal certainty and reduced financing costs.
Licensing
Licensing is essential in space activities due to their high-tech, high-risk nature. Indonesia’s current licensing process is complex and time-consuming, involving multiple government agencies, which can deter private companies from participating in space activities. Streamlining this process is crucial for attracting investment.
State Liability
International law holds states liable for any damage caused by their space activities. As Indonesia plans to build and operate a space port, it faces the responsibility for damages caused by space objects launched from its territory. Strategies to mitigate these liabilities are necessary.
Dispute Settlement
The involvement of private actors in space activities increases the potential for disputes. While international space law provides dispute settlement mechanisms between states, it lacks clear mechanisms for disputes involving non-state actors. In Indonesia, enforcing arbitration awards is challenging due to complex legal procedures and uncertainties.
Export Control
Space technology, due to its dual-use nature, is subject to strict export controls. As Indonesia is not part of major export control regimes, acquiring space technology for development is difficult. The country is drafting regulations to facilitate technology transfer and protect sensitive space technology.
Conclusion
For Indonesia to successfully commercialize its space activities, addressing these regulatory barriers is imperative. Creating a predictable and efficient regulatory environment is key to attracting private sector participation and investment in space activities.
