Director of the country`s largest telecommunications company Harry M Zen said the funds would be needed to strengthen the capital of the company to meet its targets.
"All funds expected to be raised from the MTNs would be used for the expansion of access networks and backbone of the broadband networks of Fiber to The Home (FTTH)," Harry said.
The MTNs would be for one to three years, he said.
The Indonesian rating company PT Pemeringkat Efek Indonesia gave the MTN and the sharia MTN the rating of idAAA (Triple A) and idAAAsy (Triple A Syariah).
Reporting by Mentari Dwi Gayati
Editing by Albert Saragih, Bustanudin