Indonesia's $220 million Nusantara-2 satellite was destroyed after a Chinese rocket malfunctioned shortly after launch in April 2020, severely harming the archipelago's attempts to fortify its communication networks. However, it gave one individual an opportunity.

The owner of SpaceX, the most successful rocket launcher in the world, Elon Musk, capitalized on Jakarta's inability to choose his preferred company for launching satellites into space over state-owned China Great Wall Industry Corp. (CGWIC).

With cheap financing, broad support for its space ambitions, and Beijing's geopolitical clout, the Chinese contractor had courted Indonesia, the largest economy in Southeast Asia and a key space growth market.

According to reporters, two industry insiders and a senior government official in Jakarta who are acquainted with the situation said that the malfunction signaled a shift in Indonesia's policy away from Chinese space contractors and toward businesses owned by Elon Musk.

Nusantara-2 was the second satellite launch that CGWIC was given by Indonesia, matching the two that SpaceX had launched at the time. China has handled none of SpaceX's launches since its debacle; the company has launched two Indonesian satellites and is scheduled to launch a third on Tuesday.

According to reporters, SpaceX defeated Beijing thanks to a mix of less expensive reusable rockets, dependable launches, and Musk's close friendship with Indonesian President Joko Widodo. In 2022, after the two men met in Texas, SpaceX also succeeded in getting regulatory permission for their Starlink satellite internet service.

The SpaceX agreements represent a unique opportunity for a Western business to gain traction in Indonesia, where Chinese firms predominate in the telecom industry due to their low prices and simple financing. The achievements followed after Indonesia, citing its reliance on Beijing's technology, rebuffed American demands to sever ties with Chinese tech firm Huawei.