Promoting Digital Infrastructure: Rp47 Billion Rolling Fund Finances Indosat Cooperative Fibre Optic Project
The Cooperative Fund Management Institution (LPDB) continues to demonstrate its commitment to strengthening the cooperative ecosystem in productive and strategic sectors, including support for national digital infrastructure development.
One such initiative involves financing for Indosat Employee Cooperative (Koperasi Pegawai PT Indosat Tbk). This financing has been allocated towards a backbone fibre optic project aimed at expanding internet access to communities, including villages with limited connectivity.
Cooperative Minister Ferry Juliantono expressed the Cooperative Ministry’s full support for the fibre optic network development initiative undertaken by Indosat Cooperative in partnership with strategic partners. The project is viewed as an important step towards broadening internet access for the public and strengthening digital services across various regions.
“From the Cooperative Ministry, we genuinely want to demonstrate that we support the Indosat Cooperative programme for fibre optic development, which works in collaboration with PT Indosat and PT Kereta Api Indonesia. This is one of the major programmes we will promote because it will help expand internet access to the public,” Ferry stated during a site visit to the Backbone Fibre Optic Project Construction at the East Circular Railway Line at Gubeng Station, Surabaya, on Monday, 9 March 2026.
The site visit was attended by LPDB Cooperative Chief Executive Krisdianto, Indosat Cooperative Chief Executive Wahono, Fibre Optic Head Syafnedi, Deputy Head of Gubeng Station Marji, ministerial staff specialists, LPDB Cooperative Sharia Finance Director Ari Permana, and LPDB Cooperative General and Legal Director Deva Rachman.
The Cooperative Minister explained that the development of the backbone fibre optic network serves as the primary foundation for expanding internet coverage. Once the backbone is connected, the network can be extended to various regions requiring internet access.
According to Ferry, the fibre optic project is projected to span approximately 4,600 kilometres along railway routes. The network covers areas from Cikampek to Banyuwangi, as well as other routes towards Cilacap and Tegal. Network development will reach Java and Bali, with potential expansion to other regions including Sumatra.
“Indosat Cooperative’s profile has now been supported by the Cooperative Fund Management Institution, LPDB, which is a Public Service Agency under the Cooperative Ministry. LPDB has provided approximately Rp47 billion in financing to Indosat Cooperative,” Ferry stated.
The project is expected to provide a solution for expanding internet connectivity in areas with limited digital access, including support for the operationalisation of the Red and White Village Cooperative programme.
“The hope is that all citizens can obtain internet access. This is a cooperative effort, assisted by LPDB, to increase the number of areas requiring internet so that solutions can be found and implemented,” he said.
LPDB Cooperative Chief Executive Krisdianto affirmed that financing support to cooperatives operating in productive sectors is part of LPDB Cooperative’s strategy to strengthen the role of cooperatives in national economic development.
According to him, digital transformation is one of the fundamental needs in promoting grassroots economic growth, particularly for cooperatives and businesses in regions.
“LPDB Cooperative continues to encourage cooperatives to enter strategic sectors, including digital infrastructure. Financing support to Indosat Cooperative is a concrete step we are taking to strengthen digital connectivity that can eventually be utilised by the broader public, including to support the economic activities of cooperatives and micro-enterprises in regions,” Krisdianto said.
He added that the backbone fibre optic development is expected not only to increase public internet access but also to accelerate digital transformation of cooperatives across various Indonesian regions, including village cooperatives.
“With increasingly stronger digital connectivity, village and regional cooperatives can more easily access markets, financial services, and various digital platforms that will increase their competitiveness. This is part of LPDB Cooperative’s efforts to ensure that the financing we distribute truly provides broad economic benefits for the public,” Krisdianto stated.
Through financing support to cooperatives operating in strategic sectors such as digital infrastructure, LPDB Cooperative hopes to continue strengthening the role of cooperatives as engines of grassroots economic development whilst supporting the national digital transformation agenda.