ISDN Holdings Makes Strategic Move in Indonesia’s Renewable Energy Sector: Acquires Majority Stake in PT Funda
Key Takeaways for Retail Investors
- ISDN Holdings acquires 51% of PT Funda for IDR 2.55 billion (approx. SGD 2 million), expanding its footprint in Indonesia’s hydropower sector.
- PT Funda specializes in end-to-end hydropower solutions, including engineering, procurement, construction, and operations & maintenance.
- PT Funda’s engineering team boasts more than 20 years of experience and has completed over 70 hydropower projects in Asia, totaling 4,500 MW.
- Indonesia’s new 2025–2034 electricity plan (RUPTL) sets aggressive targets for renewable energy, with hydropower expected to be a major growth driver.
- ISDN expects the acquisition to boost its recurring income base, enhance long-term business resilience, and position the group for national expansion.
ISDN Holdings Deepens Its Indonesian Renewable Energy Presence
ISDN Holdings Ltd., a leading industrial automation solutions provider headquartered in Singapore, has taken a significant step to reinforce its renewable energy ambitions in Indonesia. On August 21, 2025, ISDN announced the acquisition of a 51% majority stake in PT Funda Konstruksi Engineering (PT Funda), an emerging hydropower engineering and construction specialist.
The acquisition was executed at a price of IDR 1,000,000 per ordinary share, amounting to IDR 2.55 billion (about SGD 2 million) for 25,500 shares. This move aligns with ISDN’s strategy to grow its capabilities in end-to-end hydropower project delivery, from upstream engineering, procurement, and construction (EPC) to downstream operations & maintenance (O&M).
What Makes PT Funda Valuable?
PT Funda, though only established in February 2024, is led by a team of seasoned engineers with over two decades of experience in hydropower construction. Collectively, they have designed and built more than 70 hydropower projects across Asia, with a combined installed capacity of 4,500 MW. In Indonesia alone, since 2014, the team has built a strong market base and delivered four grid-connected hydropower projects totaling 57 MW — including ISDN’s own “Laobin 1” small hydropower project.
The team currently holds a project pipeline of over 10 high-quality hydropower projects, with a planned capacity exceeding 300 MW. PT Funda had already been engaged as the EPC contractor for ISDN’s upcoming “Laobin 3” project prior to this deal, demonstrating trust and synergy between the two groups.
Why This Matters for Shareholders
This acquisition is not just a routine expansion; it’s a strategic play in response to Indonesia’s ambitious new electricity business plan. The government’s 2025–2034 RUPTL (Electricity Supply Business Plan) has doubled the renewable energy capacity target. By 2034, Indonesia aims to add 42.6 GW of new renewable generation and 10.3 GW of storage systems, raising the share of renewables in the national energy mix from 52% to a staggering 74%. Hydropower is expected to make up 27.5% of this new capacity, making it the second largest contributor.
ISDN’s move positions it right at the heart of this national growth trend — and PT Funda’s established local expertise gives ISDN a direct pipeline to project execution and value creation. For shareholders, this means:
- Potential for accelerated revenue growth and recurring cash flows as ISDN expands its hydropower portfolio.
- Enhanced project management and technical expertise through PT Funda’s proven track record.
- Stronger competitive positioning in the high-growth Indonesian renewable energy market.
- Resilience in long-term business operations as renewables become a larger part of ISDN’s income mix.
Is This News Price Sensitive?
While the acquisition’s absolute value is below the Singapore Exchange’s mandatory disclosure thresholds, it is nonetheless strategically significant. ISDN’s deeper integration in Indonesia’s booming renewable energy sector and its ability to deliver full-cycle hydropower solutions could drive investor sentiment and share price, especially as the RUPTL plan unlocks a wave of new projects.
In addition, successful project execution and recurring cash flows from new hydropower assets may give ISDN stronger earnings visibility and stability, elements highly prized by retail and institutional investors alike.
About ISDN Holdings
ISDN Holdings is an established Asian industrial automation solutions provider with over 10,000 customers and 78 sales offices across Asia’s key growth markets. Listed on both the Singapore and Hong Kong Exchanges, ISDN delivers solutions for advanced manufacturing (semiconductors, Industry 4.0), medical devices, aerospace, and clean energy sectors — including 5G, robotics, IoT/IIoT, cloud, and edge computing. The company was founded in 1986 and has a 30-year track record of innovation and growth.
Contact and Further Information
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions. The information presented is based on company disclosures and publicly available data, and may be subject to change.
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