ISDN Holdings Limited, an industrial automation and renewable energy company, has acquired a 51% stake in PT Funda Konstruksi Engineering to expand its hydropower capabilities in Indonesia. The acquisition involves 25,500 shares totalling IDR25.5 billion (approximately S$2.0 million).
PT Funda provides end-to-end hydropower services, including engineering, procurement, and construction (EPC) as well as operations and maintenance (O&M). The company was established in February 2024 but is led by engineers with over 20 years of experience in water conservancy and hydropower projects across Asia, including the completion of more than 70 projects totalling 4500MW. In Indonesia, the team has delivered four grid-connected projects totalling 57MW and maintains a project pipeline exceeding 300MW.
“The acquisition of PT Funda aligns with ISDN’s long-term plan to provide a one-stop renewable energy solutions in Indonesia and capture a larger pie in this growing sector,” said Teo Cher Koon, Managing Director and President of ISDN. “Our successful collaboration on the Lau Biang 1 project reinforced our confidence in PT Funda’s technical expertise, which was built through extensive experience in major projects across Asia. By combining PT Funda’s engineering capabilities with ISDN’s strong abilities in renewable energy project development and management, we are well-positioned to scale our presence nationwide.”
The acquisition will complement ISDN’s existing mini-hydropower operations in Indonesia and strengthen its ability to deliver full project lifecycle solutions. PT Funda had previously been appointed as the EPC contractor for ISDN’s Lau Biang 3 project.
Under Indonesia’s recently released Electricity Supply Business Plan 2025–2034 (RUPTL), the government aims to double renewable energy capacity, targeting 42.6GW of renewables and 10.3GW of storage by 2034. Hydropower is expected to account for 27.5% of the planned additional capacity.
“We have seen significant opportunities in Indonesia’s renewable energy sector underpinned by enhanced government initiatives,” Teo added. “This positive momentum not only supports the expansion of our project pipeline as a power plant operator but also opens up promising prospects for PT Funda in early-stage project development, such as geological surveys and feasibility studies, as well as downstream O&M services. With years of incubation, renewable energy has become an important part of our business portfolio, contributing stable and recurring net cash streams. With the addition of PT Funda to our renewable energy business roadmap, we are confident in growing our recurring income base and further strengthening the Group’s long-term business resilience.”
