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Grab pumps in USD700 million to support Indonesia’s move to the digital economy

Nayela Deeba | Feb. 7, 2017
Besides providing financial support, the ride-hailing platform will also focus on creating new IT jobs and upskilling Indonesians.

(Left to Right) John Riady, Director, Lippo Group, Karlo Manik, Director of Traffic and Transportation, Jabodetabek Transportation Management Board, H.E. Rudiantara, Minister of Communication and Information Technology, Anthony Tan, Group CEO & Co-Founder Grab, H.E. Thomas Lembong, BKPM Chief, Rosan Roeslani, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), and Ridzki Kramadibrata, Managing Director of Grab Indonesia, at the launch of 'Grab 4 Indonesia 2020' master plan, 2 February 2017.

Ride-hailing platform, Grab, has launched a "Grab 4 Indonesia" 2020 master plan, which is endorsed by Indonesia's governmental board, Badan Koordinasi Penanaman Modal (BKPM).

The move follows a strong year of growth in Indonesia for Grab, with its GrabCar and GrabBike businesses each growing more than 600 percent in 2016. Following its 2016 expansion to several new cities, Grab is now available in Jakarta, Bali, Bandung, Padang, Makassar, Medan, Surabaya and Yogyakarta.

As part of the master plan, Grab will invest USD700 million (IDR 933,000,000) in Indonesia over the next 4 years to support the country's goal of moving towards a digital economy.

The masterplan will cover three major aspects.

Firstly, Grab will create new IT jobs and upskill Indonesians. It will open a research and development (R&D) centre in Jakarta, which will focus on developing innovations specific to the country.  The company aims to hire 150 engineers for the centre over the next two years.

Grab will also select fresh graduates through on-campus interviews and partnerships with state and engineering universities to provide training at its R&D centres in Singapore, Beijing and Seattle.

"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.

Secondly, Grab will invest up to USD 100 million (IDR 133,000,000) in tech startups in the mobile and financial services industries that are focused on deepening financial inclusion in Indonesia.

The company will also organise a series of entrepreneurship programmes in collaboration with selected partners including educational institutions and entrepreneurship organisations. This includes seminars and mentorship from Grab executives on developing a substantial business plan.

Lastly, Grab will continue to increase Indonesia's access to mobile payments and financing opportunities with the launch of mobile services such as GrabPay Credits. The company will also develop e-money payments platform with Lippo Group and Nobu Bank to encourage Indonesians to use Grab to pay for services and goods at Lippo's retail partners.

Rosan Roeslani, Chairman of the Indonesian Chamber of Commerce and Industry, said: "The government and the private sector must work hand-in-hand to invest in human capital and enable Indonesia to move up the value chain. Grab's investment into the long-term future of Indonesia and opening of its R&D centre in Jakarta will boost our technology sector and provide more economic opportunities to all Indonesians."

 

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