ADB Disburses Rp2.53 Billion Loan to Improve Indonesia's Internet Connection Quality
The Asian Development Bank (ADB) has announced the provision of a loan valued at US150million, equivalenttoRp2.53billion(atanexchangerateofRp16, 892/US), to PT Link Net Tbk (Linknet) to enhance digital infrastructure in Indonesia and improve broadband quality.
The financing is also directed towards strengthening Linknet’s stability and facilitating further investment in the fibre-optic broadband market, in line with its strategic shift towards a business-to-business model.
“This important agreement strengthens ADB’s role as a trusted partner in Indonesia’s digital development agenda,” said ADB’s Country Director for Indonesia, Bobur Alimov in a written statement.
The ADB has ensured that the loan agreement will help communities and businesses access digital tools through Linknet’s investment to expand its nationwide fibre-to-the-home (FTTH) network, which provides high-speed internet directly to homes using fibre-optic cables.
Additionally, it relates to the development of an open-access wholesale model that will improve broadband quality, productivity, and participation in the digital economy—particularly for micro, small, and medium-sized enterprises.
“By supporting the expansion of Linknet’s digital infrastructure services, we aim to provide inclusive and equitable access and unlock the digital economic potential of this country, which is estimated to reach US$366 billion by 2030,” said Bobur.
The ADB has also ensured that the agreement will support the country’s climate commitments through energy-efficient technology and improved network assets.
Since 2015, Indonesia’s mobile broadband industry has grown, but adoption, access, and broadband product pricing according to the ADB remain static, with fibre-optic networks still lagging behind neighbouring countries.
To address these challenges, the government is developing sectoral policies to simplify the licensing process and standardise cost structures to encourage a competitive landscape for fibre-optic broadband operators.