The Race to Reinvent Asia’s Internet Backbone

Telin, ITCO, and SDEC unite on ICE II to boost Asia’s data resilience

10 Nov 2025

Asia’s digital lifelines are multiplying. Three telecom firms-Indonesia’s Telin, Malaysia’s ITCO Niaga and the Sarawak Digital Economy Corporation-are collaborating on the Indonesia Cable Express II, or ICE II, a subsea network meant to upgrade the region’s internet backbone.

Signed in stages between August and October 2025, the agreement charts a path from Singapore to Batam, Jakarta and Surabaya, then eastward to Manado before branching into Sabah and Sarawak in East Malaysia. The route deliberately avoids the congested South China Sea, easing strain on existing cables and lowering exposure to geopolitical and physical disruptions.

ICE II’s impact could extend beyond speedier downloads. By connecting remote provinces, it may attract data centres, cloud-computing firms and green-tech investors, especially in Borneo, where Malaysia is keen to nurture a digital economy. “This project is a milestone for Southeast Asia’s digital future,” said Budi Satria Dharma Purba, Telin’s chief executive. Sudarnoto Osman, who heads SDEC, believes stronger links could make Sarawak a hub for emerging industries.

Construction details remain under review as the consortium moves through feasibility, regulatory and environmental checks. Still, the effort reflects a shift in Asia’s infrastructure strategy: regional players are now taking the lead in meeting soaring demand from artificial intelligence, streaming and cloud services.

If finished, ICE II would add both capacity and resilience to Southeast Asia’s networks, while giving its backers a firmer grip on the region’s data flows. In a world where digital traffic increasingly determines economic power, control of the cables beneath the sea may prove as strategic as control of the shipping lanes above.