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Digital Infrastructure Rollout Bridges Indonesia’s Connectivity Divide

Digital Infrastructure Rollout Bridges Indonesia’s Connectivity Divide

Indonesia
Market Insight

Indonesia’s digital infrastructure development has accelerated significantly, with ProSpace Indonesia’s Connectivity Report showing that high-speed internet access has reached 87% of the population, up from 73% in 2023. The improvement is particularly notable in eastern Indonesia, where coverage has increased by 29 percentage points.
The government’s Palapa Ring project, providing fiber optic backbone connectivity across the archipelago, has been complemented by last-mile solutions including fixed wireless access and low-cost satellite internet services. Mobile network coverage now reaches 98.5% of populated areas, though quality varies significantly.
“Indonesia is successfully addressing both access and affordability barriers that previously limited digital participation,” notes Diana Kusuma, Digital Infrastructure Specialist at ProSpace. “Innovative public-private partnerships and technology-neutral policies have proven particularly effective.”
5G networks now cover 42 cities, primarily in Java, Sumatra, and Bali, with 19.7 million subscribers. Meanwhile, 4G remains the dominant technology nationwide with 215 million connections. Infrastructure sharing regulations have accelerated deployment while reducing costs.
Internet exchange points have expanded from 4 to 12 since 2023, improving domestic traffic management and reducing latency. Meanwhile, data center capacity has grown by 65%, supporting increased local content hosting.
Challenges remain in digital literacy and affordability for the lowest income segments, issues being addressed through targeted subsidy programs and skills development initiatives across educational institutions.
For digital infrastructure analysis: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates

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Climate Finance Initiatives Creating Green Investment Opportunities Across Africa

Africa
Business News

Innovative climate finance mechanisms are creating substantial green investment opportunities across Africa, mobilizing capital for projects that combine climate impact with commercial returns. These initiatives are channelling unprecedented funding into renewable energy, sustainable infrastructure, and climate-smart agriculture.
Key developments include specialized green bond programs designed for African issuers; blended finance vehicles combining concessional and commercial capital; results-based financing tied to verified carbon reductions; and climate-focused venture capital targeting early-stage innovations.
These mechanisms have mobilized over $8.5 billion in climate-aligned investments during 2024, with particularly strong flows into distributed solar, green transportation infrastructure, and resilient agricultural systems.
“Africa’s climate finance landscape has evolved significantly beyond grant funding to create genuine investment opportunities with attractive returns,” explains Dr. Kofi Mensah, Sustainable Finance Director at ProSpace Indonesia. “The most successful approaches combine climate impact with clear commercial models addressing Africa’s development priorities.”
ProSpace Indonesia provides specialized climate finance advisory services, including opportunity assessment, mechanism selection, and implementation planning.
For information on African climate finance opportunities, contact ProSpace Indonesia at +62 877 8887 7678 or email info@prospaceindonesia.com. Follow @prospace.indonesia on Instagram for insights on Africa’s evolving sustainable finance landscape.

Fintech Disruption Reshapes Indonesian Banking Landscape

Indonesia
Market Insight

Traditional banking institutions in Indonesia are facing unprecedented competition as fintech adoption rates surge across the country. A new study by ProSpace Indonesia reveals that 47% of Indonesian banking customers now use at least one fintech service regularly, up from 31% in 2023.
Digital payments lead the disruption, with peer-to-peer lending, investment platforms, and neobanks gaining significant market share. The report indicates that traditional banks could lose up to 28% of their revenue streams to fintech competitors by 2027 if they fail to adapt.
“Banks are no longer competing with other banks—they’re competing with user experience and technological innovation,” explains Fitra Widjaja, Banking Sector Analyst at ProSpace. “Institutions that embrace open banking and collaborative models with fintech players are maintaining their competitive edge.”
The central bank’s regulatory sandbox approach has enabled controlled innovation while maintaining financial stability. Meanwhile, recent regulatory changes have opened doors for virtual banking licenses, with five new digital-only banks launched in the past year.
Traditional banks are responding with digital transformation initiatives, with the top five banks allocating an average of 15% of operational budgets to technology investments this year—double the amount from 2023.
The ultimate winners may be Indonesian consumers, who now enjoy more financial options, lower fees, and improved access to credit and investment opportunities.
For more information: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates