Grab will invest US$700 million in Indonesia over the next four years to support Indonesia’s goal of becoming Southeast Asia’s largest digital economy by 2020.
This is a part of the “Grab 4 Indonesia” 2020 master plan, endorsed by Badan Koordinasi Penanaman Modal (BKPM), the Government of Indonesia’s Investment Coordinating BoardGrab.
The plan covers three major aspects:
The first is to create a new information technology jobs and upskill Indonesia’s human capital. Grab will open an R&D centre in Jakarta and target hiring 150 engineers over the next two years. The R&D centre will focus on developing innovations specific to Indonesia by building on the success of Grab’s existing localised solutions, including algorithms to address new road regulations in Jakarta and GrabHitch (Nebeng), a “bike-pooling” service that caters to nearly 1.4 million commuters in greater Jakarta.
To equip Indonesian engineers with globally competitive skills, Grab will provide training opportunities at its R&D centres in Singapore, Beijing and Seattle.
“The master plan is testimony to Indonesia’s conducive business climate. We welcome companies like Grab who want to contribute to the country’s economic progress and create jobs for Indonesians – to further strengthen the nation’s competitiveness in the global marketplace,” said H.E. Thomas Lembong, BKPM chief.
Grab will also be investing in technopreneurship for social good. It will invest up to USD $100 million in startups to grow the next wave of Indonesian companies with social aspirations to bring more Indonesians into the digital economy. The fund will focus on the mobile and financial services industries, with a particular emphasis on serving smaller cities and communities who have yet to benefit from the digital economy.
The fund will also help selected startups accelerate their products to market with both capital investment and technical assistance from Grab. In support of the “1,000 digital startups national movement” initiated by the Government of Indonesia, Grab will also organise a series of entrepreneurship programs in collaboration with selected partners including educational institutions and entrepreneurship organisations. This will include seminars for aspiring technopreneurs and mentorship from Grab executives on developing sustainable business plans with social purpose.
“Grab’s investment to train and hire more ICT professionals and mentor young entrepreneurs will accelerate the growth of Indonesia’s digital economy. This kind of app has to be positioned as a tool to spur and empower people and the economy, ” said H.E. Rudiantara, minister of Communication and Information Technology.
“As the largest homegrown technology startup in Southeast Asia, we are excited to make this significant investment in Indonesia’s future and accelerate their transition to a fully integrated digital economy,” added Anthony Tan, group CEO and co-founder
It will also expand access to mobile payments and financing opportunities.
The company will continue to launch and enhance mobile services to increase Indonesians’ access to mobile payments and financing opportunities. Grab will expand its mobile payment solutions in Indonesia through GrabPay Credits, its cashless stored value option, and existing partnerships with Mandiri and their e-Cash solution, while also continuing to develop a shared e-money payments platform with Lippo Group and Nobu Bank to enable all Indonesians to useGrab to pay for services and goods at Lippo’s retail partners.
Ridzki Kramadibrata, managing director, Grab Indonesia, said that the master plans represents a building block towards creating a sustainable growth for the country. “We will train engineers and invest in aspiring technopreneurs so that they, in turn, can develop technology solutions and create new economic opportunities,” he added.