KB Bank Backs Surge 5G Project as Indonesia Seeks Cheaper Internet

JAKARTA, Investortrust.id — PT Bank KB Indonesia Tbk or KB Bank, an Indonesian listed commercial bank backed by South Korea’s KB Financial Group, provides structured non-cash financing to PT Solusi Sinergi Digital Tbk or Surge, a fiber optic operator controled by President Prabowo Subianto's brother Hashim Djojohadikusumo, on Sunday, Feb 15, 2026 in Jakarta to accelerate the early rollout of its 5G Fixed Wireless Access network on the 1.4 GHz spectrum, as Indonesia seeks to expand affordable broadband access and narrow its digital divide.

The facility, extended through Surge’s subsidiary PT Telemedia Komunikasi Pratama, takes the form of Letters of Credit and Domestic Documentary Credit in rupiah to support equipment procurement for the IRA or Internet Rakyat program.

Kunardy Darma Lie, President Director of KB Bank, said the structured trade finance facility aimed to ensure disciplined capital management during the initial deployment phase.

"KB Bank is committed to supporting initiatives that make a tangible contribution to strengthening the national digital ecosystem. The provision of non-cash facilities in the form of L/C and SKBDN is part of our support for scalable infrastructure projects such as Surge’s 5G FWA implementation," he said.

Surge Director Shannedy Ong said the Internet Rakyat initiative was designed to deliver high-quality fixed broadband at affordable prices by leveraging 5G FWA technology.

"Structured financing support from KB Bank strengthens procurement efficiency and accelerates execution in the early implementation stage," he said.

Rising cost and regulatory frictions

The financing move comes as industry players warn that internet services in Indonesia remain relatively expensive and unevenly distributed.

Indonesian Telecommunications Network Operators Association (Apjatel) said overlapping fiber optic regulations across regions had slowed infrastructure rollout and raised costs.

Vice Chairman Fariz Azhar Harahap said operators faced layered regulatory charges from central to local governments, including spectrum usage fees and local cable placement levies.

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"Regulatory costs that are not harmonized make investment inefficient. This condition triggers disparities in internet service prices between regions," he said.

Operators also cited complex land access permits and rental fees for state-owned land that were sometimes treated as commercial space, despite underground fiber installation.

Government targets 100 mbps and lower tariffs

The government has responded with a plan to accelerate digital infrastructure expansion and reduce affordability gaps.

Ministry of Communication and Digital targets nationwide 100 Mbps internet coverage by 2029, alongside a reduction in internet costs to 2.5 percent of per capita income from the current 4.5 percent.

The ministry's Director of Digital Infrastructure Acceleration Mulyadi said the plan combined mobile broadband expansion, fixed broadband penetration, and collaboration with private operators.

"We have a 2029 target for mobile and fixed broadband development. Internet affordability must improve, and quality must reach 100 Mbps as a national standard," he said.

Mobile broadband already covers 99 percent of the territory, although around 3,000 villages still face weak or no signal.

Fixed broadband coverage stands at 73 percent of sub-districts and is targeted to reach 90 percent by 2029 to reduce structural digital inequality.

Officials said infrastructure in commercially viable areas would remain driven by private investment, while the state would focus on underserved and remote regions.

In that context, Surge’s 5G FWA 1.4 GHz rollout offers an alternative to conventional fixed-line networks, allowing faster deployment and lower upfront infrastructure costs.

As financing institutions, operators, and regulators move in parallel, Indonesia’s digital transformation agenda now hinges on whether cost efficiency, regulatory harmonization, and technology innovation can converge to deliver affordable, high-speed internet at scale.