The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with Indonesian broadband provider Linknet to support nationwide expansion of fixed broadband connectivity through a financing package of up to US$350 million.
The funding aims to help Linknet scale its fibre network, particularly in secondary and tertiary cities where broadband coverage remains limited, strengthening digital inclusion and supporting Indonesia’s digital economy.
The package includes up to US$200 million from IFC’s own account in a loan, while IFC also acted as mandated lead arranger to mobilise a further US$150 million from the Asian Development Bank (ADB), DealStreetAsia reported.
This marks IFC’s first exposure to Indonesia’s fixed broadband infrastructure sector.
Linknet CEO Kanishka Gayan Wickrama said the partnership would support network expansion and modernisation, including upgrades to improve energy efficiency and infrastructure resilience.
“Our partnership with IFC represents a significant step forward in expanding inclusive connectivity across Indonesia while ensuring sustainability at the core of our growth strategy, a concrete reflection of our purpose,”
he stated.
The project will also support the transition from older copper-based hybrid fibre-coaxial (HFC) connections to fibre-optic networks, which are more reliable and generally require less energy for data transmission.
Despite Indonesia’s telecommunications sector being among the fastest growing in Asia-Pacific, fixed broadband penetration remains low at about 23%, compared with a regional average of 52%, highlighting the need for further infrastructure investment.
“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’s Country Manager for Indonesia.
Linknet, part of Malaysia-based Axiata Group Berhad, provides fixed broadband services to over 4.6 million homes across 70 cities, offering Linknet Fiber, Linknet Enterprise, and Linknet Media for businesses and communities since its establishment in 2020.
Featured image credit: Edited by Fintech News Indonesia, based on image by leoaltman via Freepik
