Link Net 2024

active

PT Link Net Tbk (the ‘Company’ or ‘Linknet’), is one of the leading high speed broadband services provider (https://www.linknet.co.id/en) in Indonesia leveraging cutting-edge technology, including hybrid fiber-coaxial (“HFC”) and fiber-to-the-home (“FTTH”) cable systems. Linknet is 75.4% owned by Axiata Investments (Indonesia) Sdn. Bhd., a subsidiary of Axiata (https://www.axiata.com/) and 19.2% by PT XL Smart Telecom Sejahtera Tbk. (the 3rd largest mobile network operator (MNO) in Indonesia & 34.8% owned by Axiata). Axiata acquired Linknet in June 2022 to enhance the Group’s market position in Indonesia broadband market.Linknet operations are limited to establishing and operating local intra-city (within the city) broadband cable network and associated downstream infrastructure up to end user devices. Linknet has indefeasible right of use (IRU) arrangement for upstream backbone networks comprising of international/ domestic submarine cable networks and sub-national inter-city (between cities) networks except for two inter-city backbone networks that are constructed and operated by the Company between Surabaya and Malang (78km) and Malang to Kediri (154 kms) which is less than 0.5% of its existing cable network length. These two intercity cable network are aligned along existing highways and does not traverse through off-road, protected forest areas or critical/natural habitats. Company has no immediate plans to install and operate any intercity backbone networks under the Project.As on May 2025, Linknet owns and operates an intra city network across 56 cities in Indonesia with a cable network comprising of: 1) fibre to the home optical cable (FTTH) network of 32,786km long; and 2) coaxial cable network of 16,346km long. Company has been investing only in fibre optic FTTH cable network as part of its network expansion plans since 2020. Linknet manages its entire national network through network nodes comprising of two data centers (Jakarta and Surabaya) and one national level network operations center (NOC) at Jakarta. Currently the company network delivers high speed broadband services to 4.31 million Homes Passed (HP) and 2,300 corporate/enterprise customers.The proposed IFC transaction is a local currency loan facility to PT Link Net Tbk. The proceeds from the facility will be used towards re-financing of Linknet’s existing loans and to fund FY25-26 Capex program for expansion of Linknet’s ‘FTTH’ network (the ‘Project’) in Java and Sumatra Islands. IFC has no exposure to Linknet till date. However, Axiata has been an IFC Client since 2007 and currently has two active projects ongoing: (i) Dialog Axiata in Sri Lanka, Project #46205; and (ii) Robi Axiata in Bangladesh, Project #44302. The E&S performance as per IFC annual monitoring and supervision records of both the above active projects remain “Satisfactory” as on May 2025.