Grab to inject US$2bn into Indonesia using SoftBank funds, plans another HQ

Grab is investing US$2 billion into Indonesia over a period of five years using capital invested by SoftBank to boost the development of the country's digital infrastructure. The investment will go towards creating a next-generation transportation network for cities and transforming how critical services, such as healthcare, are delivered. This also comes as SoftBank, which invested US$1.46 billion in Grab earlier this month, aims to grow its presence in Indonesia.

Grab and SoftBank will invest to create a next-generation transport network for Indonesia based around an electric vehicle ecosystem that will drive cities toward a greener and cleaner transportation grid. Both companies will also develop geo-mapping solutions for Indonesia, in order to drive the country’s development and adoption of future technologies. Grab will also launch affordable e-healthcare services in Indonesia, within the next three months, aiming to increase access significantly to doctors and medical services for all Indonesians.

As part of the ride haling company's long-term commitment to Indonesia, it announced plans for a second headquarters in Indonesia which will house Grab's R&D centre in Jakarta. It will also be the dual headquarters for the GrabFood business. Grab's second headquarters aims to serve the unique needs of Indonesian consumers and focus on developing solutions that empower micro-entrepreneurs, such as Grab-Kudo agents.  According to the press statement, relevant solutions will be introduced to other Southeast Asian emerging economies.

Anthony Tan (pictured left), CEO of Grab, said Indonesia is Grab's largest market and it is committed to long-term sustainable development of the country.

"We are delighted to facilitate this SoftBank investment, as we believe by investing in digitising 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," Tan added.

Meanwhile, president of Grab Indonesia, Ridzki Kramadibrata (pictured right), said having its second headquarters in Jakarta will allow the company 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," Kramadibrata said.

Indonesia Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan (pictured second from right) said:  “Supported by the growing economy, Indonesia has a good investment climate where we are working together to boost the ease of investment in Indonesia." He added that 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," he added.

Since 2017, Grab has invested over US$1 billion into Indonesia through its Grab 4 Indonesia 2020 master plan, and its commitment to invest into Indonesian startups. Grab aims to double the number of micro-entrepreneurs in the country in five years, up from the five million created so far, with this additional US$2 billion commitment to Indonesia.

(Photo courtesy: 123RF)