Asian Development Bank Provides USD150 Million Loan to Support Indonesia's Digital Infrastructure
The Asian Development Bank (ADB) has announced a USD150 million loan to PT Link Net Tbk (Linknet) to enhance digital infrastructure in Indonesia and improve broadband quality.
The financing will be used to strengthen Linknet’s stability and facilitate further investment in the fibre optic broadband market, aligning with the company’s 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. By supporting the expansion of Linknet’s digital infrastructure services, we aim to provide inclusive and equitable access and unlock this nation’s digital economic potential, estimated to reach USD366 billion by 2030,” said Bobur Alimov, ADB Country Director for Indonesia, on Tuesday, 10 March 2026.
The agreement will help communities and businesses access digital tools through Linknet’s investment in expanding its national fibre-to-the-home (FTTH) network, which provides high-speed internet directly to homes using fibre optic cables. It will also support the development of an open access wholesale model to enhance broadband quality, productivity, and participation in the digital economy, particularly for micro, small, and medium enterprises.
“The agreement will also support the country’s climate commitments through energy-efficient technology and upgraded network assets,” he added.
Indonesia’s fibre optic infrastructure remains underdeveloped. Since 2015, Indonesia’s mobile broadband industry has grown rapidly, but adoption, access, and pricing of fixed broadband products such as fibre optic networks remain lagging compared with neighbouring countries.
To address this challenge, 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.
“We are very enthusiastic about partnering with ADB on this important project to enhance our capability in supporting Indonesia’s digital economy,” said Linknet Chief Executive Officer Kanishka Gayan Wickrama.
According to him, the financial agreement will enable the company to provide more efficient and faster services to its customers. “This will also allow us to access long-term financing to align with our strategic and operational shifts,” he added.