IFC Commits Up to $350 Million Financing to Linknet for Indonesia Fiber Broadband Expansion

The International Finance Corporation (IFC) has announced a financing package of up to $350 million to PT Link Net Tbk (Linknet), Indonesia's leading wholesale fixed broadband provider.

This landmark deal includes a $200 million loan from IFC and $150 million mobilized from the Asian Development Bank (ADB), marking IFC's first investment in Indonesia's fixed broadband sector.

Driving Nationwide Fiber Network Growth

Linknet, a subsidiary of Axiata Group Berhad, will use the funds to expand high-speed fiber connectivity across Indonesia, targeting underserved secondary and tertiary cities.

The initiative addresses Indonesia's low fixed broadband penetration rate of around 23 percent, compared to the Asia-Pacific average of 52 percent.

Boosting Digital Inclusion and Economic Impact

By transitioning from outdated copper-based networks to efficient fiber-optic infrastructure, the project will enhance energy efficiency and network resilience.

This expansion is expected to unlock economic opportunities, foster innovation, and create high-quality jobs in Indonesia's burgeoning digital economy.

Linknet's CEO, Kanishka Gayan Wickrama, stated that the partnership advances inclusive connectivity while embedding sustainability in growth strategies.

Euan Marshall, IFC’s Country Manager for Indonesia, emphasized the role of reliable broadband in bridging connectivity gaps and enabling business participation in the global digital economy.

Future Prospects for Indonesia's Telecom Sector

Historically, Indonesia's telecom sector has grown rapidly, but fixed broadband lags; this financing positions Linknet to close that gap and support national digital transformation.

Looking ahead, the upgrades promise greater reliability and lower energy use, paving the way for sustained telecom efficiency and broader digital access nationwide.