The Asian Development Bank (ADB) announced a $150 million loan to PT Link Net Tbk (Linknet) to enhance digital infrastructure and improve broadband quality in Indonesia. The financing will also be used to strengthen Linknet's stability and facilitate further investment in the fiber-optic broadband market, aligning with its strategic shift toward a business-to-business model.

"This landmark agreement reinforces ADB's role as a trusted partner in Indonesia's digital development agenda," said ADB Country Director for Indonesia Bobur Alimov. "By supporting Linknet's expansion of digital infrastructure services, we aim to provide inclusive and equitable access and unlock the potential of the country's digital economy, which is projected to reach $366 billion by 2030."

The deal will help communities and businesses access digital tools through Linknet's investment to expand its national fiber-to-the-home (FTTH) network, which provides high-speed internet directly to homes using fiber-optic cables, as well as develop an open-access wholesale model that will enhance broadband quality, productivity, and participation in the digital economy—particularly for micro, small, and medium-sized enterprises. The deal will also support the country's climate commitments through energy-efficient technology and upgraded network assets.

Since 2015, Indonesia's mobile broadband industry has grown rapidly, but the uptake, access, and pricing of broadband products such as fiber-optic networks remain below neighboring countries. To address these challenges, the government is developing sectoral policies to simplify licensing processes and standardize fee structures to encourage a competitive landscape for fiber-optic broadband players.

"We are very excited to partner with ADB in this crucial project to enhance our capabilities in supporting Indonesia's digital economy," said Linknet Chief Executive Officer Kanishka Gayan Wickrama. "This financial deal will enable us to provide more efficient and faster services to our customers. It will also allow us to access long-term financing to align with our strategic and operational shift."

Linknet is a leading broadband service provider in Indonesia majority owned by Axiata Group Berhad, a leading telecommunications and digital services company focused on mobile and broadband services in Asia.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth in Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB leverages innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. ADB was established in 1966; it is owned by 69 members—50 from the region.