DigitalMedium Risk

Jakarta Digital Infrastructure Corridor

Indonesia · Southeast Asia · Concession

Deal Size

$520M

Target IRR

13–17%

PPP Model

Concession

Concession Term

20 years

High IRRStrategic

Deal Summary

A 20-year concession to design, build, finance, and operate a 2,400km metro fiber backbone across Jakarta's greater urban region, plus 45 smart city data centers. Indonesia's BUMN ministry and Kominfo have co-sponsored the PPP framework.

Background

Indonesia has a 78% internet penetration rate but only 42% fixed broadband coverage in urban areas. Jakarta's smart city program requires reliable, owned fiber infrastructure rather than reliance on fragmented private ISP networks.

Project Milestone Timeline

Feasibility Complete

Q2 2024Completed

RFP Issued

Q4 2024Completed

Preferred Bidder

Q3 2025In Progress

Financial Close

Q1 2026Upcoming

Phase 1 Build

Q2 2026Upcoming

Full Operations

Q4 2028Upcoming

Key Deal Risks & Mitigation

Wholesale pricing pressure

Medium

Government anchor tenancy covers 30% of revenue

IDR/USD currency

Medium

USD-indexed fee schedule for DFI debt servicing

Technology obsolescence

Low

20-year upgrade clause with flexible capex schedule

Permitting delays

Medium

Government co-sponsor accelerates right-of-way