ISDN acquires 51% stake in PT Funda

PT Funda specialises in both upstream EPC and downstream operations and maintenance (O&M) services for water conservancy and hydropower projects. This end-to-end capability complements ISDN’s existing renewable energy business, which currently focuses on the development and operation of mini-hydropower plants, enabling us to deliver full project lifecycle solutions to expand the company’s foothold in Indonesia.

Established in February 2024, PT Funda is led by a team of highly experienced engineers with over 20 years of track record in the construction of water conservancy and hydropower projects. The team have completed the design and construction of more than 70 hydropower projects in Asia with a total installed capacity of 4500 MW. In Indonesia, the team has also established a strong foothold since 2014, successfully completing four grid-connected hydropower projects under EPC contracts, totalling 57 MW in installed capacity. This includes the group’s first mini-hydropower plant project, Lau Biang 1. Currently, they have a robust pipeline of over 10 projects with planned capacity exceeding 300 MW.

Building on their proven track record in the Indonesian renewable energy market, PT Funda has been appointed as the EPC contractor for the Lau Biang 3 project prior to this acquisition.

Teo Cher Koon, Managing Director and President of ISDN, said: “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. 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.”

Teo added: “We have seen significant opportunities in Indonesia’s renewable energy sector underpinned by enhanced government initiatives. 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 down-stream 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.”

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