ADB Backs Indonesia’s Digital Expansion With $150m Broadband Loan

ADB officials said the investment will support Indonesia’s ambition to build a more inclusive digital ecosystem, with the country’s digital economy projected to reach $366 billion by 2030.

The Asian Development Bank (ADB) has approved a $150 million loan to PT Link Net Tbk (Linknet) to strengthen digital infrastructure in Indonesia, expand high-speed broadband access, and support the country’s rapidly growing digital economy.

The financing will help Linknet expand its fiber-to-the-home (FTTH) network, improve broadband quality, and accelerate the company’s transition toward a business-to-business (B2B) digital infrastructure model.

Boosting Indonesia’s Fast-Growing Digital Economy

ADB officials said the investment will support Indonesia’s ambition to build a more inclusive digital ecosystem, with the country’s digital economy projected to reach $366 billion by 2030.

“This vital deal reinforces ADB’s role as a trusted partner in Indonesia’s digital development agenda,” said Bobur Alimov, ADB Country Director for Indonesia.

“By supporting Linknet’s expansion of its digital infrastructure services, we aim to provide inclusive and equitable access and further unlock the country’s digital economy potential.”

Expanding Nationwide Fiber Broadband

The loan will support Linknet’s investment in expanding its nationwide fiber-optic broadband network, which delivers high-speed internet directly to homes and businesses through advanced fiber cables.

The project will also strengthen Linknet’s open-access wholesale network model, allowing other internet service providers to use its infrastructure. This approach is expected to:

• Improve overall broadband speed and service quality

• Expand internet access to more communities

• Increase competition within Indonesia’s broadband market

Improved connectivity is particularly expected to benefit micro, small, and medium-sized enterprises (MSMEs) by enabling access to digital platforms, e-commerce, and cloud-based tools.

Supporting Climate-Friendly Digital Infrastructure

ADB said the project will also contribute to Indonesia’s climate commitments by investing in more energy-efficient network technologies and modernizing digital infrastructure assets.

Fiber networks generally consume less energy than older copper-based systems while providing significantly higher speeds and reliability.

Addressing Gaps in Fixed Broadband Access

Although Indonesia has experienced rapid growth in mobile broadband services since 2015, fixed broadband adoption—including fiber networks—remains relatively low compared with neighboring countries.

Limited infrastructure, high costs, and complex permitting processes have slowed expansion of high-speed fixed internet networks.

To address these challenges, the Indonesian government is developing sector-specific reforms to streamline permits and standardize fee structures, helping create a more competitive environment for fiber broadband providers.

Linknet Strengthens Digital Infrastructure Strategy

Linknet CEO Kanishka Gayan Wickrama said the partnership with ADB will help the company accelerate investments and deliver faster, more affordable internet services.

“We are excited to partner with ADB on this important project in advancing our capacity to support Indonesia’s digital economy,” Wickrama said.

“The financial deal will enable us to provide cost-efficient and faster services to our customers while allowing us to access longer-term financing aligned with our strategic shift.”

Expanding Digital Inclusion Across Indonesia

Indonesia, Southeast Asia’s largest economy with more than 270 million people, has prioritized digital transformation as a key driver of economic growth.

Experts say expanding reliable high-speed internet infrastructure will be critical for improving digital inclusion, supporting small businesses, and enabling innovation across sectors such as fintech, education, and e-commerce.

ADB officials say the new financing will play an important role in strengthening Indonesia’s digital connectivity while ensuring more communities and businesses can participate in the country’s expanding digital economy.