In April 2020, a Chinese rocket experienced a malfunction soon after liftoff, resulting in the destruction of the $220 million Nusantara-2 satellite and causing disruption to the communication networks of the archipelago. This incident dealt a setback to the region’s endeavors to fortify its communication infrastructure. However, it also created an opening for Elon Musk, the proprietor of SpaceX, the world’s preeminent rocket-launching company.
The accident prompted Indonesia to pivot away from its long-time reliance on China and its Chinese-backed state-owned space contractors and toward the American aerospace manufacturer and space transport services company that Musk heads. Last June, SpaceX’s Falcon 9 rocket pushed into orbit the 4.5-tonne Satellite of the Republic of Indonesia (SATRIA-1) – Southeast Asia’s largest satellite. The deal marked a rare instance of a Western company making inroads into telecommunications in Indonesia, dominated by Chinese companies offering low costs and easy financing. The breakthrough came as Jakarta resisted US pressure to abandon deals with Chinese tech giant Huawei, citing the nation’s dependence on Beijing’s technology.
As the global satellite industry grows, the battle between SpaceX and China to dominate the market offers a window into a broader geopolitical contest for dominance in space. China is seeking to advance its technological prowess by building a network of launch bases around the globe and establishing itself as a dominant player in the global markets for satellite manufacturing, service, and launches. SpaceX, meanwhile, relies on private funding and has billion-dollar US government contracts. The tussle between the two firms marks the first time the US has lost ground in the global race to dominate space.
The success of SpaceX and its ability to compete with China in the market for putting satellites into orbit reflects Musk’s unusual background and skills. The entrepreneur was born in Pretoria, South Africa, to a model mother and engineer father and grew up with a voracious appetite for reading and science fiction. He also had a deep interest in computer software and computers, which he honed by writing computer programs in his spare time. He later earned degrees in economics and physics from the University of Pennsylvania before moving to California.
As a young adult, he worked for two years as an employee of a company that provided software and hardware to the banking industry. But he soon realized his true passion was building and flying rockets, so he founded his own company – the privately funded SpaceX. Since then, it has launched more than 100 missions into space and logged some of history’s most successful commercial flights. The success of SpaceX has transformed Musk’s image and his fortune.
