ADB provides $150 million loan to Linknet to expand fiber broadband in Indonesia

By Romel S. Gurky

The Asian Development Bank has approved a US$150 million loan to internet service provider PT Link Net Tbk (IDX: LINK) to support the expansion of digital infrastructure and improve broadband services in Indonesia.

The financing will be used to expand Linknet’s nationwide fiber to the home network, which delivers high speed internet directly to households through fiber optic cables, and to strengthen the company’s open access wholesale broadband model.

Bobur Alimov said the financing supports Indonesia’s digital development agenda and aims to increase inclusive access to digital services as the country’s digital economy is projected to reach $366 billion by 2030.

The investment will also help Linknet upgrade network assets and adopt more energy efficient technologies while supporting the company’s strategic shift toward a business to business model.

Read also : IFC to provide up to $350 million financing for Linknet broadband expansion

Kanishka Gayan Wickrama said the partnership with ADB would enable the company to expand digital infrastructure services and provide faster and more cost efficient connectivity.

Indonesia’s fixed broadband penetration remains relatively low compared with neighboring countries despite rapid growth in mobile broadband services since 2015, highlighting the need for further investment in fiber networks.

Linknet is one of Indonesia’s major broadband providers and is majority owned by Axiata Group Berhad, which operates mobile and digital services across Asia.

Editing by Alexander Ginting