IFC Backs $350M Fiber Broadband Expansion in Indonesia

The initiative aims to strengthen Indonesia’s digital economy by improving connectivity, promoting innovation and creating new employment opportunities, particularly in underserved regions.

More households and businesses across Indonesia are set to gain access to faster and more reliable internet as PT Link Net Tbk (Linknet) expands its nationwide fiber-optic network with financial support from the International Finance Corporation (IFC).

The initiative aims to strengthen Indonesia’s digital economy by improving connectivity, promoting innovation and creating new employment opportunities, particularly in underserved regions.

$350 Million Financing Package

Under the new partnership, IFC—part of the World Bank Group focused on private sector development—is providing a financing package of up to $350 million, denominated in Indonesian Rupiah.

The funding includes:

• Up to $200 million in IFC direct financing

• $150 million mobilized from the Asian Development Bank (ADB)

IFC also served as Mandated Lead Arranger for the transaction, coordinating the broader financing effort.

The investment marks IFC’s first financing in Indonesia’s fixed broadband infrastructure sector, reflecting growing international support for digital connectivity in emerging markets.

Expanding Broadband to Underserved Cities

The financing will help Linknet expand high-speed fiber-optic broadband infrastructure across Indonesia, particularly in secondary and tertiary cities where reliable internet access remains limited.

Indonesia’s telecommunications market is one of the fastest growing in the Asia-Pacific region, but fixed broadband access still lags behind regional averages.

Currently:

• Fixed broadband penetration in Indonesia: about 23%

• Regional average: about 52%

Expanding fiber networks is expected to help close this gap and improve digital access for millions of households and businesses.

Boosting Indonesia’s Digital Economy

Improved connectivity is widely seen as a key driver of economic development in Indonesia, enabling businesses to participate more fully in the global digital economy.

“Expanding access to reliable, high-speed connectivity is essential for unlocking economic opportunities, better jobs, and innovation for Indonesia’s growth,” said Euan Marshall, IFC Country Manager for Indonesia.

“By working with Linknet, we are supporting the scale-up of modern broadband infrastructure that helps bridge connectivity gaps.”

Modernizing Telecommunications Infrastructure

The project will also support the telecommunications sector’s transition away from older copper-based hybrid fiber-coaxial (HFC) systems toward modern fiber-optic networks.

Fiber-optic technology offers several advantages:

• Higher data transmission speeds

• Greater network reliability

• Lower energy consumption compared with copper systems

The upgrades are expected to enhance the efficiency and sustainability of Indonesia’s telecommunications infrastructure.

Supporting Sustainable Growth

Linknet’s leadership said the financing will support both network expansion and technological upgrades aimed at improving energy efficiency and infrastructure resilience.

“Our partnership with IFC represents a significant step forward in expanding inclusive connectivity across Indonesia,” said Kanishka Gayan Wickrama, Chief Executive Officer of Linknet.

“Beyond growth, the financing will also support network upgrades that enhance energy efficiency and strengthen the resilience of our infrastructure.”

Meeting Rising Demand for Connectivity

Linknet, a subsidiary of Axiata Group Berhad, is one of Indonesia’s leading fiber broadband infrastructure providers.

The company has been rapidly expanding its network footprint nationwide to meet growing demand for high-quality internet services as businesses and households increasingly rely on digital technologies.

The IFC-backed investment is expected to accelerate Indonesia’s progress toward a more connected, innovative and digitally inclusive economy.