Indonesia is set to see a major expansion in high-speed broadband access after the International Finance Corporation (IFC) agreed to provide a financing package of up to $350 million to PT Link Net Tbk (Linknet), one of the country’s leading fiber infrastructure companies, the organisation confirmed. The deal — IFC’s first investment in Indonesia’s fixed broadband sector — will fund the rollout of fiber connectivity across the country, with a strong focus on secondary and tertiary cities that have long been left behind.
Indonesia’s digital economy is growing fast, but its fixed broadband penetration sits at just 23%, well below the regional average of around 52%. That gap holds back businesses, limits job quality and keeps millions of households cut off from the opportunities that reliable internet enables. Linknet’s expansion, backed by IFC’s own-account loan of up to $200 million and a further $150 million mobilised from the Asian Development Bank, is designed to start closing that gap — while also upgrading older copper-based networks to modern, more energy-efficient fiber infrastructure.
“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 CEO Kanishka Gayan Wickrama added that the partnership reflects the company’s core purpose of linking “the nation for better lives,” and that the financing will also strengthen network resilience and energy efficiency alongside pure growth.
Beyond connecting more homes and businesses, the initiative is expected to generate higher-quality jobs as the network scales and the telecommunications sector modernises. Linknet, a subsidiary of Axiata Group Berhad, is already one of the country’s most active fiber operators, and this injection of capital puts it in a strong position to accelerate nationwide coverage.
For IFC, the investment signals a clear bet that digital infrastructure in emerging markets is one of the most effective levers for broad-based economic development — and that closing connectivity gaps is as much a development priority as roads, schools or healthcare.
