- Grab announced that it will be plugging $2 billion in the digital infrastructure of Indonesia through an investment from SoftBank
Grab has announced that it is going to invest $2 billion into Indonesia over the next five years with the capital invested by SoftBank in order to accelerate the development of the country’s digital infrastructure. This investment will go towards creating a next-generation transportation network for cities and transforming how critical services (such as healthcare) are delivered.
These initiatives were announced after a meeting between Indonesia’s President Joko Widodo, SoftBank Group chairman and CEO Masayoshi Son, Grab CEO Anthony Tan, and Grab Indonesia president Ridzki Kramadibrata at the Merdeka Palace in Jakarta. At the meeting, this group discussed Indonesia’s ambition of becoming the largest digital economy in Southeast Asia in the next few years by focusing on investment opportunities in the technology sector and developing homegrown technology talent. SoftBank had invested $1.46 billion in Grab earlier this year and it is seeking to grow its presence in Indonesia.
In order to help Indonesia achieve this ambition, SoftBank is going to invest $2 billion into the country through Grab to drive the digitization of crucial services and infrastructure. And Grab and SoftBank will invest to create a next-generation transport network for Indonesia based around an electric vehicle (EV) ecosystem that will drive cities toward a greener and cleaner transportation grid.
“Indonesia’s technology sector has huge potential. I’m very happy to be investing US$2 billion into the future of Indonesia through Grab,” said Son.
Both companies are developing geo-mapping solutions for Indonesia in order to drive the country’s development and adoption of future technologies. And Grab will also launch affordable e-healthcare services in Indonesia within the next 3 months aiming to increase access significantly to doctors and medical services for all Indonesians.
“Supported by the growing economy, Indonesia has a good investment climate where we are working together to boost the ease of investment in Indonesia. This investment is evidence that Indonesia has been on the radar of investors, especially in the technology sector. We look forward to working with Grab, the fifth unicorn in Indonesia, and SoftBank to empower SMEs, accelerate tourism, and improving health services,” added Indonesia Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan.
Grab also announced plans for a second headquarters in Indonesia as part of the company’s long-term commitment to Indonesia. The new headquarters will house Grab’s rapidly growing R&D center in Jakarta and it will be the dual headquarters for the GrabFood business — which is the largest food delivery provider across Southeast Asia.
The second headquarters will also serve the unique needs of customers in Indonesia and focus on developing solutions that empower micro-entrepreneurs such as Grab-Kudo agents. The relevant solutions will be introduced to other Southeast Asian emerging economies.
“With our presence in 224 cities, Indonesia is our largest market and we are committed to long-term sustainable development of the country. We are delighted to facilitate this SoftBank investment, as we believe by investing in digitizing critical services and infrastructure, we hope to accelerate Indonesia’s ambition to become the largest digital economy in the region and improve the livelihoods of millions in the country,” noted Tan.
Grab is one of Indonesia’s five tech unicorns and the company’s second HQ in Indonesia will provide career opportunities for thousands of Indonesians and it will upskill more local tech talent in partnership with leading Indonesian universities.
“Grab is an Indonesia-focused company. Having our second headquarters in Jakarta will allow us to better serve the needs of all Indonesians and those from emerging economies in the region. As a technology decacorn, Grab very well understands the needs and challenges we have here. We are also well positioned to support more high tech industries and infrastructure companies originating from Indonesia,” commented Kramadibrata.
Ever since 2017, Grab has invested more than $1 billion into Indonesia through the Grab 4 Indonesia 2020 master plan and its commitment to invest into Indonesian startups. With the additional $2 billion commitment to Indonesia, Grab is now aiming to double the number of micro-entrepreneurs in the country in five years, up from the 5 million created so far.
According to a CSIS and Tenggara Strategic research report, Grab has driven a significant impact on Indonesia’s economy. Specifically, Grab’s contribution to the economy in Indonesia last year was approximately IDR 48.9 trillion or US$3.5 billion.
