According to the Zhitong Finance APP, ISDN HOLDINGS (01656) announced that the company intends to acquire 25,500 ordinary shares of PT Funda Konstruksi Engineering (PT Funda) at a price of 1 million Indonesian Rupiah per share. This means holding 51% of the equity in PT Funda, with a total transaction value of 2.55 billion Indonesian Rupiah (approximately 2 million Singapore Dollars).

PT Funda focuses on upstream engineering, procurement, and construction (EPC) for hydropower projects, as well as downstream operation and maintenance (O&M) services. This end-to-end capability complements ISDN's existing renewable energy business. Currently, this business mainly focuses on the development and operation of small hydropower stations, enabling us to provide comprehensive solutions covering the entire project lifecycle, thereby further expanding our market presence in Indonesia.

Although PT Funda was only established in February 2024, its leadership team consists of experienced engineers who have over 20 years of outstanding performance in the construction of hydropower projects. The team has successfully designed and built more than 70 hydropower projects in Asia, with a total installed capacity of up to 4,500 megawatts. In Indonesia, since 2014, the team has successfully established a solid market foundation and completed 4 grid-connected hydropower projects under the EPC contract framework, with a cumulative installed capacity of 57 megawatts. This includes the group's first small hydropower project—Laobin 1. Currently, the team has reserved over 10 high-quality projects, with a total planned capacity of over 300 megawatts.

Based on its excellent performance record in the Indonesian renewable energy market, PT Funda was designated as the EPC contractor for our Laobin 3 project prior to this acquisition.

Mr. Zhang Zijun, Executive Director and President of ISDN, stated regarding this acquisition: "Acquiring PT Funda aligns with ISDN's long-term strategic goals, aiming to provide one-stop renewable energy solutions for Indonesia and further expand market share in this rapidly growing industry. The successful collaboration on the Laobin 1 project has further strengthened our confidence in PT Funda's technical expertise. This expertise stems from its extensive experience accumulated in major projects across Asia. By combining PT Funda's engineering capabilities with ISDN's excellence in renewable energy project development and management, we are fully confident in expanding our business nationwide."

In the recently released 2025-2034 Electricity Supply Business Plan (RUPTL), the Indonesian government announced an ambitious initiative to double the renewable energy capacity targets compared to previous plans. In the new RUPTL, Indonesia plans to add 42.6 gigawatts of renewable energy generation facilities and 10.3 gigawatts of energy storage systems by 2034, increasing the share of renewable energy (excluding battery storage) in the national energy structure from the previous 52% to 74%. Among these, hydropower generation facilities are expected to account for 27.5% of the planned new capacity, becoming the second-largest source of expansion under the new plan When evaluating the prospects of Indonesia's renewable energy market, Mr. Zhang Zijun added: "We have seen the government's strengthened measures bringing tremendous opportunities to Indonesia's renewable energy sector. This positive momentum not only drives the expansion of our project pipeline as a power plant operator but also opens up broad prospects for PT Funda in early project development (such as geological surveys and feasibility studies) as well as downstream operation and maintenance services.

After years of development and nurturing, renewable energy has become an important component of our business portfolio, providing us with stable and continuous net cash flow. With the addition of PT Funda, our renewable energy business blueprint has been further refined. We are confident in expanding our recurring revenue base and further enhancing the long-term business resilience of the Group."