The International Finance Corporation (IFC) has announced a financing package of up to USD350 million to support the expansion of fibre-optic broadband infrastructure in Indonesia through PT Link Net Tbk (Linknet). The initiative aims to strengthen digital connectivity across the country and support Indonesia’s growing digital economy, particularly in underserved regions.
The financing package includes up to USD200 million in direct funding from IFC and an additional USD150 million mobilised from the Asian Development Bank (ADB). IFC also acted as the mandated lead arranger for the transaction. The project marks IFC’s first investment in Indonesia’s fixed broadband infrastructure sector.
The funding will help Linknet expand high-speed fibre networks across secondary and tertiary cities where access to reliable internet remains limited. Indonesia’s fixed broadband penetration currently stands at around 23 per cent, significantly below the regional average of about 52 per cent. The project will also support the transition from older copper-based hybrid fibre-coaxial systems to modern fibre-optic infrastructure, which offers higher speeds, improved reliability and greater energy efficiency.